Equities is the asset class that has provided best returns over the long term. Since 1900, returns on Swedish equities have averaged 9.9 per cent per year, which after inflation is 6.1 per cent – twice as much as government bonds during the same period. This ranks the Swedish stock market as the fourth best performing market worldwide after Australia, South Africa and the US. However, it only accounts for one per cent of the total capital in all stock markets worldwide.
Investing in Xact ETFs means that you in one single investment achieve risk diversification and hence avoid the specific company risk that might otherwise arise from holdings which include just a few individual stocks.