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. S&P 500Did not bring any results in 2025, to which investors have become accustomed to the last decade. Several winds prevented from renovated trade tariffs to fears about the federal reserve policy.
While American markets staggered, herring index closer to the house stole the program.
. Ishares Core FTSE 100 ETF(LSE: KUCHEX) has increased by 13.8% so far, compared to 9.3% S & P 500 profit. This makes it one of the best effective ETFs in the world this year.
His highest weight resources are who is the British blue chips: Astrasenec (7.81%), HSBC (7.39%), Shell (7.14%), Unilever (5%) i Rolls-Royce (4.1%). The expenditure indicator is a very slim 0.07%, which means that most returns are transferred to shareholders.
It is worth noting, however, that this year’s star growth is unusual and does not happen often. From the very beginning, annual ETF returns of 7.41% – generally in accordance with the average phrases FTSE 100 (In the case of dividends).
Within a decade, this attaches to a cumulative return of 113.5%. Not bad because of the inexpensive Set-And Forted fund.
Better option?
Despite the mighty ETF show, I am more attracted to another fund. . Scottish Mortgage Investment TrustS (LSE: SMT) provided even stronger profits in 2025, compared to 14.7% of the year until now.
More importantly, its long -term achievements are much more impressive. From September 2005, the Trust generated an unusual 1 274% total return. This is equivalent to an annual return of 14% per year in the last two decades.
Of course, previous results are never a guarantee of future phrases. The challenging exposure of the Fund to American technology increases the risk of concentration and the risk of foreign currencies if the dollar loses its value.
But Mortgage Scottish has something that a basic tracker FTSE 100 cannot compare – a real global diversification.
Yes, the portfolio focuses on the names of high height technology, such as NvidiaIN Microsoft AND Finish. But he also invests in retail innovators, including Meituan AND Mercadolibre. Plus, it boasts healthcare, such as Modern And even private equity shares, including SpaceX and Databicks.
This spread in industries and geography helps to take into account trust from the risk specific to the region and exposes them to the most electrifying companies in the world.
What does it mean for investors
S&P 500 has long been considered a reference point for capital performance. However, in 2025 he was basic FTSE 100 trackers – and more adventures of a Scottish mortgage.
This emphasizes the importance of looking out of Wall Street when choosing wrestling. When building a portfolio with many years of perspective, diversification is critical to avoid extended losses due to the risk of concentration.
For people looking in an inexpensive way to reflect the capacity of FTSE 100 ETF Ishares seems to be a reasonable option to consider.
But for investors who are ready to accept a slightly greater risk in exchange for higher diversification and growth potential, I think that a Scottish mortgage can be an even better fund that you can look at the long run.
