ETF Risiken: Wie sicher sind ETFs? 3 Risiko-Kennzahlen!

When it comes to investing, we usually look at one important thing, that is, the return we can achieve with it, but there are other key figures that you can take into account when putting together your portfolio and these are key risk figures because, as we know , risk and return are an inseparable couple that is currently going up and down in the markets and some people are uncomfortable with it, let's deal with this risk today, have fun with the video hello, my name is Thomas from finanzus and the video today We will deal with it The opposite pair of profitability and risk First of all we will see what risk really is, how to differentiate it, what risk indicators exist and where the corresponding risk indicators can be found for each of them.

ETF that is available in Germany Let's start first. First of all, to understand risk, here we must distinguish between two things: there is the so-called subjective risk and objective risk. Subjective risk is your personal perception of risk. What you have if, for example, you are afraid of flying, is a very subjective perception of risk because if objectively speaking, the plane is one of the safest means of transportation in the world, but even if you know these statistics, you probably still feel uncomfortable when flying and the same goes for investments. There are also more or less pronounced risks here, but each person has a different sensitivity to risk.

Some people don't mind big fluctuations in their portfolio and others. We get nervous at even the slightest movement. Let's go to the objective risk. Objective risk is what can actually be measured, so these are very clear key figures, so they are specific and based on individual value and not the individual investor. your subjective perception of risk, that is, how comfortable you feel when investing, we have already made some videos. Today we will look at objective risk indicators in the securities sector, perhaps also in a small definition. as a complement it means nothing more than fluctuations in value, so to speak, the risk that you start with a particularly high price, that is, that you buy something expensive and then it is worth less, so in reality it is only the negative fluctuation of value, which may even be so strong that it leads to a total loss or 100% loss of value.

These fluctuations can also be measured and this brings us to the first risk indicator, that is, the so-called volatility or in statistics we would simply call it standard deviation. First you can calculate the volatility with this formula that seems very complicated, but we can. You can also use this formula quite well. For example, let's look at a fluctuating stock price graphically. To find out how much this price fluctuates, we first calculate the average, which we could now draw here as a solid line as sort of a continuous line. trend line and now we know how much this price fluctuates.

As the line fluctuates, we calculate the distance from each individual point, that is, from each individual price point we have, which can be, for example, an end-of-day price to the corresponding price. average We do this both with the values ​​that are above the line and with the values ​​that are below, they are above the line and therefore are negative, but since we do not want to take into account negative values, then everything is squared, They add up these values ​​that we have calculated for each individual point, then we simply multiply them by 1 divided by the number of values ​​and we take the root out of them here again because we squared values ​​beforehand and the result is our volatility.

There are several deviations in how other volatilities can be calculated, but the simplified formula is this. If we now put a second price on top of it, it follows exactly the same trend, but if there are any. In significantly stronger swings both up and down, the distances we measure, i.e. the corresponding point measured with its mean, become significantly larger, which of course also affects our volatility and of course we can also see that this price fluctuates significantly more. and therefore it must have a greater volatility even though in the end it has exactly the same value and that is exactly what risk indicators are about.

We first look at performance, that is, where I start and where I end up later. The second point we are interested in is how much risk I took on this route and this risk is nothing more than a fluctuation in value measured here as volatility. Let's now see where I can actually find this value in ETFs because I have Good news for you: you don't need to calculate everything yourself; we have already done it for you. If you go to our ETF search on our website, you will find this risk section for each ETF. If we click here, we'll get that as well.

Let's go straight to the risk indicators and we will see that the first risk indicator listed here is volatility. Volatility, of course, is calculated, like performance, over different time periods, which. This means that we see here that this MSCI World ETF is 15.12 percent in one year. There is a little more fluctuation in three years and a little less fluctuation in 5 or 10 years. We can see that we have quite strong fluctuations here. This number means that it is essentially the fluctuation both above and below the average line, that is, the fluctuation around the average performance. Here we have a stock ETF with relatively low volatility because it is distributed around the world, but now let's compare everything with another asset class we can simply scroll up here and add this ETF to a comparison here and then click here on detailed comparison and here in our comparison app let's now add a bond ETF here for comparison, this Euro Government Bond ETF and maybe another one.

The sector's bet is the Oak Stocks Europe 600 Euland Guest, which is based solely on oil and gas producing companies. Let's sort them three times by increasing volatility, as we at least assume. We can just grab this ETF here and drag it around. thank you Arwen for this cool feature that he created for us, then we can just scroll down a little bit to Risk and get it here. The risk metrics shown here we see a one year volatility of 7% for government bonds, 15% for the MSCI World that we just looked at and 24.35% in this sector ETF, the volatilities for 3 and 5 years They look similar Unfortunately, there are no 10-year values ​​here because not all three ETFs have been around for ten years, so we can see a relatively Government bonds are, of course, safe investments that offer less yield but have significantly less fluctuation.

As I said, there are a lot more fluctuations as to whether you have more returns. Now we have seen the first risk indicator, but there are also risks. a second risk indicator that we can show you or it is actually more of a mix of risk and return indicator. Perhaps you have already heard of the so-called acute ratio. The formula for the chart breaker also looks like this. , there are a variety of variations in our ETF search, we settled on the simplified form of a buy ratio because we simply divide the return an ETF has generated through volatility.

We decided not to deduct the risk-free interest rate from the return. This makes sense in theory, but it adds another assumption to us about what the risk-free interest rate is and that's why we decided not to do it and since we do this the same way for all ETFs, our numbers are also comparable. Does a sharp ratio say that in the end you put the return in relation to the risk in the fluctuation of value i.e. in the form of volatility, the more units of return you can get with less volatility the better i.e. the higher the return ?

This fraction, the higher my Sharp ratio will be or, conversely, the lower the volatility, the higher the low graph will be and much less good. Of course, you can also find the Sharporation ratio on the ETF profile page if you click on risk here. Already see the Sharpray show below and don't be surprised that a year ago the chartbrey is already negative and a negative chartbratio has relatively little importance, we hide it None here at the moment. Now we can also see the color comparisons. We are back in our overview and can see the chart breakers for three periods: one year, three years and five years.

Here we show the negative values. Because we have a certain level of comparability, you should really pay attention. the fact that negative time periods and, above all, such short ones, such as one year and sometimes even three years, have relatively little importance. Here we leave you to illustrate these values. Comparing each other, the MSCI World has the best. shabbratio, that is, the best combination between risk and return, we come to a third risk indicator, namely the maximum Jordan or in German, the highest accumulated loss or, as I like to call it, the bye sellow indicator because that is exactly what Jordan Max expresses how big, the biggest loss would have been if he had actually entered at the high point and then called the low point and then sold there.

In our search you get these values ​​for the maximum Jordan. Of course, it always depends on which one. 1 We are looking at the time frame and we have even prepared everything graphically for you here with the so-called underwater chart, which I will explain again in a moment. The important thing here is the maximum Jordan, so in. In a year, the maximum loss would be from the highest point to the lowest point. There was a loss of 16.88% in the last 12 months over a longer period of time. If we look at three, five or ten years, then the maximum.

The loss for this MSCI World ETF would have been more than 33%. Most likely it was due to the fall of Corona, but we can see that here. For example, if we look at the five-year perspective, we see that the maximum drop occurred in March 2020. It was exactly this Corona crisis. If we look at the maximum term, we see that the financial crisis was much worse, that is, in 2009 the lowest point would have been reached for everyone who joined in 2007, that is, the maximum loss would have been. Here, if you had joined in May 2007 and then sold in March 2009, you would have made a loss of almost 50%-49%.

By the way, the value of the first third that you can see here is -52%, that is because after the first third the prices fell even more sharply, so the lowest point would actually have been reached here on the 6th. March, but now it's here. The count is not included because we only show monthly values, so I find this graph very interesting because it helps. , especially with one thing: the subjective risk assessment, that is, if you want to see how much you have gone downhill and it is up to you if you want to know how well you are coping with this objective risk measured here, then you should look at an underwater graph of this type and see that if, in the worst case, you had gotten here in May 2007, you wouldn't have left the loss zone until March 2013.

In the end, this chart shows you this maximum Jordan. The chart or underwater chart simply shows you the length of periods you would have been in the red if you had actually entered at the worst possible time so you can see three important risk indicators. I wanted to show you one last thing. You can still find here in our ETF search, that is, the so-called issuer risk. Nowadays, all kinds of brokers advertise many securities as ETFs that have more than 1000 or 2500 ETFs, but not all of them are actually ETFs. and that is why we have them here Filter special assets If you set this filter, you can be sure that the assets you invest in such product are real special assets, that is, they are kept separate from the assets of the issuer and therefore, They are protected against insolvency. , which is not the case with ETCS or ETN, for example, the ITC is perhaps only briefly used as a complement: they are exchange-traded commodities, so commodities are traded, but this is not a special fund but rather Derivatives and ETNs are traded on exchanges. notes, which are mainly products with interest-bearing securities or, for example, all crypto ETNs.

I hope you found this tutorial useful. Now you know where you can find ETF search, just visit us at finanzus.de or link to it. in the video description below Have fun finding out how much risk or how much fluctuation your ETFs have and maybe yes. Use the comparison and compare individual ETFs against each other based on their risk indicators. Thanks for watching, if you haven't already we'll be glad if you give us the thumbs up. If you haven't already, we produce new videos regularly. and tutorials on investment topics, investment strategies and financial products to make the world of finance more understandable until the next video