World Portfolio Classic investment strategy

¹ Adding bonds and commodities to an equity portfolio increases diversification and can have a positive impact on the portfolio's risk-return profile, especially in times of crisis. The Scalable World Portfolio Classic is broadly diversified across asset classes with equities, bonds and commodities. An exception is the World Portfolio 100, which is a pure equity portfolio. The aforementioned individual ETFs on the MSCI World or FTSE All-World contain only equities and are therefore not diversified across asset classes.

² Regular review of ETF selection with regards to composition, diversification, costs, tax efficiency, tracking quality, liquidity and replication by Scalable Capital experts.

³Daily monitoring of the portfolio and annual tax optimisation through Scalable Capital's investment technology. If rebalancing is necessary or better ETFs are available, we trade for you. Tax optimisation allows you to make the most of your exemption order, saving up to €560 in taxes annually.

⁴ With the World Portfolio Classic, the equity weighting and thus the portfolio risk can be set in 10% increments between 30-100%. If the portfolio weights deviate too much from the target weights, rebalancing takes place. In the case of ETFs on the FTSE All-World and MSCI World, on the other hand, the equity quota is fixed at 100%.

^5,6 The addition of shares from emerging markets and small caps increases the diversification of the portfolio. The World Portfolio Classic invests in small caps and achieves a market coverage of up to 99% of global market capitalisation, while ETFs on the MSCI World or FTSE All-World typically achieve a market coverage of only 85% and 90%, respectively.

⁷ Through the USA ETF used, the withholding tax on dividends from U.S. equities can be reduced to 0%, compared with 30% for physically replicating ETFs (or 15% if the fund is domiciled in Ireland). The tax benefit is already reflected in the ETF's prices and may be reflected in better performance. The majority or the largest ETFs by fund volume on the FTSE All-World and MSCI World are physically replicating, while the Scalable World Portfolio Classic uses a synthetically replicating USA ETF.

⁸ The optional withdrawal plan enables a monthly payment of constant amounts of money, such as a monthly pension, to the reference account. Most brokers available in Germany do not offer a withdrawal plan on ETFs.

⁹ Number of companies in the portfolio (rounded).

¹⁰ Ongoing costs per year as a percentage of invested assets. The product costs are already included in the prices of the ETFs and are not charged separately. For ETFs on the FTSE All-World and MSCI World Index, the costs (TER) of the largest ETF by fund volume were taken as product costs.