Which world ETF for the Altersvorsorgedepot?

Tilman Freyenhagen

Published on 15 June 2026 · Updated on 15 July 2026 · Managing Director & Partner, Alsterspree Verlag GmbH

The Altersvorsorgedepot from 2027: new opportunities for choosing your ETF

The launch of the new Altersvorsorgedepot in 2027 opens up entirely new possibilities for state-subsidised wealth building. Two established world-ETF concepts are the main options for your Altersvorsorgedepot: indices covering only developed markets, or broader indices that also include emerging markets. More emerging-market exposure means broader geographic diversification with somewhat higher volatility, while pure developed-market indices have historically been calmer but less globally diversified. Both approaches are solid building blocks for your long-term provision^[1]. Because global ETFs sit at the heart of your core investments, choosing the right world index on solid grounds is the crucial foundation for your investment success. For initial orientation and detailed background on the new rules, you can use our source-based knowledge section, which acts as your neutral guide.

High-return strategies without forced contribution guarantees

The landmark reform of private retirement provision, which fundamentally replaces the existing Riester-Rente (Germany's existing subsidised private pension) system from 2027, brings a decisive relief for self-directed investors: it drops the requirement for mandatory contribution guarantees^[1]. While old Riester contracts were forced by rigid statutory guarantee rules to shift large parts of the saved capital into low-return, fixed-income securities, the new Altersvorsorgedepot lets you invest 100 percent in high-return global equity ETFs. That means you can fully capture the historically superior returns of global equity markets over long periods, counter the real loss of purchasing power, and build up substantial wealth.

• Maximum equity allocation: no forced safety component blocks your long-term return potential, so the compound-interest effect can work at full strength.
• Greater flexibility: you decide for yourself whether to track only established developed markets or also include the growth markets of emerging economies.
• Attractive subsidy: your contributions are boosted by state allowances or tax benefits, which further increases the net return of your chosen ETF strategy.

Please note the legal notice: this does not constitute investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

The developed-market concept: the MSCI World under the microscope

If you want to manage your Altersvorsorgedepot investments yourself, you will almost inevitably come across the classic among global index funds: the MSCI World. As the traditional foundation for many private portfolios, this concept focuses purely on developed economies. The index tracks the performance of around 1,300 companies from 23 industrialised countries^[2]. For you as a self-directed investor, that means high transparency and extremely low ongoing product costs. However, this approach deliberately leaves out exposure to emerging markets, which is an important strategic choice within long-term retirement provision.

• Geographic scope: the index groups together only listed companies from 23 established industrialised countries.
• Focus on market leaders: it specifically tracks large and mid-sized listed companies (large and mid caps), while smaller companies are left out.
• US-market dominance: because weighting is based on free-float market capitalisation, over 70 percent of the fund's assets are currently allocated to US companies.
• Exclusion of emerging markets: countries such as China, India or Brazil are not included in this classic index concept.

Critics often describe this heavy US weighting as concentration risk. On the other hand, the large companies listed there mostly operate globally and generate revenue worldwide, which softens the geographic concentration. Whether this developed-market focus is the right choice for your personal payout phase, or whether broader diversification suits you better, is something you can analyse on a source-based footing. Use our knowledge section on our platform to compare different investment options in detail. Combined with the subsidy calculator, you get neutral decision support for your individual path (note: this does not constitute investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG).

Including emerging markets: MSCI ACWI and FTSE All-World as an all-in-one solution

For self-directed investors who want maximum diversification with minimal effort when building their Altersvorsorgedepot, integrated all-country concepts offer a convenient all-in-one solution. While classic developed-market indices leave out emerging markets entirely, indices such as the MSCI All Country World Index (ACWI) or the FTSE All-World cover both segments in a single product. That means you automatically participate in the economic development of around 85 to 90 percent of global market capitalisation, without having to weight and rebalance several individual funds yourself. You'll find well-grounded background on the different account models in our knowledge section.

MSCI vs FTSE Russell: comparing the two index providers

The two leading index providers, MSCI and FTSE Russell, implement the all-country principle with only minor methodological differences. The FTSE All-World Index currently comprises around 4,300 large and mid-sized companies from a total of 49 countries^[3]. Its rival, the MSCI ACWI, tracks around 2,800 holdings. Both indices weight their positions by free-float-adjusted market capitalisation. As a result, developed markets make up the lion's share at around 90 percent, while emerging markets are weighted at about 10 percent. For you as an investor, this means near-identical performance, though FTSE's higher number of holdings gives it slightly broader diversification among mid-sized companies.

The advantages and disadvantages of this approach are clear. The biggest advantage is how uncomplicated it is: you save on transaction costs, because the account never needs manual rebalancing. Set against that are slightly higher ongoing product costs compared with pure developed-market ETFs, and the lack of control over the exact emerging-market weighting. To simulate the long-term effect of fund costs and state contributions on your pension, our subsidy calculator can help. Please note that all example figures are purely illustrative. This does not constitute investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

Number of holdings and country coverage: how different are the indices really?

If you want to build your Altersvorsorgedepot around a world ETF, the indices mainly differ along two dimensions: pure developed-market concepts cover 23 countries with around 1,300 holdings, while all-country indices include up to 49 countries and over 4,000 holdings. More emerging-market exposure means broader global diversification at slightly higher volatility and cost. As your neutral guide, we see the choice between these concepts as a question of your personal risk appetite, since both are solid building blocks for long-term wealth building.

A pure developed-market index such as the MSCI World tracks companies from 23 countries and currently comprises around 1,300 equity holdings^[4]. If you choose an all-country concept such as the MSCI ACWI, your investment universe expands to 47 countries — including 24 emerging markets — and around 2,800 individual holdings^[5]. You invest even more broadly with the FTSE All-World, which pools together as many as approx. 4,300 holdings from 49 countries^[5]. By additionally including emerging markets such as China or India, you acquire thousands of extra companies in one go and reduce your dependence on individual countries.

The broader diversification has some fine practical nuances: because emerging markets have historically shown greater momentum but also bigger political and economic risks, the all-country concept tends to swing somewhat more in turbulent market phases^[6]. Set against that are slightly higher costs for all-world ETFs, though intense competition among providers has pushed these down sharply in recent years^[7]. Which concept you ultimately choose remains a question of your personal risk appetite. Through our knowledge section we offer you source-based analysis, while the subsidy calculator lets you simulate the long-term effect of state subsidies and fees on your final capital.

Note: all comparisons and figures shown are for illustration and information purposes only. This does not constitute investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

Costs and fees: does your choice of index affect the total expense ratio (TER)?

The ongoing costs of an exchange-traded index fund are mainly expressed through the total expense ratio (TER). When structuring your Altersvorsorgedepot, you'll find that pure developed-market indices such as the MSCI World are often marginally cheaper, thanks to their simpler basket of securities. Annual costs for these ETFs start at around 0.05 percent and average around 0.12 to 0.20 percent^[8]. Anyone choosing a broader all-world concept that also includes emerging markets typically pays somewhat more, reflecting the extra settlement effort in countries such as China or India. Here, the cheapest products start at around 0.07 percent, while established products mostly range between 0.15 and 0.22 percent per year^[9].

Tracking difference and its effect over time

For self-directed investors, however, the TER alone is not the only decisive metric. The so-called tracking difference (TD) — the ETF's actual deviation from the index's performance — often offsets minor cost differences. Some ETFs even achieve a positive deviation through securities lending or optimised replication, which reduces the real cost burden. Because the new Altersvorsorgedepot typically runs for several decades, even fractions of a percentage point in fees add up to noticeable differences in your final capital. To project these long-term effects precisely for your personal situation, it's worth running the numbers through the subsidy calculator. This tool transparently shows how costs and state allowances interact. The theoretical background is covered in the knowledge section.

Disclaimer: the figures and cost structures shown are for general information and orientation for self-directed investors. They do not constitute investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

Return and volatility in historical comparison: more risk, more reward?

When building a long-term Altersvorsorgedepot, self-directed investors often ask whether the extra risk of emerging markets shows up in the return. Historically, the pure developed-market focus represented by the MSCI World delivered outstanding performance over the past decades. The more broadly diversified MSCI All Country World Index (ACWI), which includes around 24 emerging markets, lagged slightly behind at times because of weak phases in some emerging markets^[10]. Even so, historical market observation shows that performance differences tend to be marginal over very long periods, while broader diversification systematically reduces the concentration risk of individual regions.

For your state-subsidised Altersvorsorgedepot from 2027, your personal risk-return profile is what matters. While emerging markets can bring higher volatility in the short term, they offer important diversification potential over the long term. We at Vorsorgedepot-Lotse recommend choosing your weighting rationally, based on your personal risk tolerance. If you're a decisive investor looking to fine-tune your strategy, you'll find deeper analysis in our knowledge section. To work out the specific state subsidy and your expected final capital, our free subsidy calculator is also available, letting you transparently simulate different cost scenarios. Please note: past returns are no reliable indicator of future performance (this does not constitute investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG).

Decision logic for the Altersvorsorgedepot: which concept suits you?

As a self-directed investor, structuring your Altersvorsorgedepot means making a fundamental choice of direction: do you go for the simplicity of a 1-ETF solution, or opt for a custom weighting across several indices? For most long-term savers, a single broadly diversified world index is the most efficient choice, since it minimises administrative effort and rules out rebalancing mistakes. Your personal risk tolerance and remaining investment horizon determine how much volatility you can accept in exchange for a higher return potential. While pure developed-market concepts such as the MSCI World have historically shown somewhat lower volatility, all-country concepts offer more comprehensive global market coverage, since they also include emerging markets^[2].

Which concept best suits your Altersvorsorgedepot depends on how much you value simplicity. If you don't want to spend time on regular rebalancing, a 1-ETF solution built around an all-world index serves you excellently. If, on the other hand, you want to deliberately overweight emerging markets, the classic 70/30 model is a good fit. Use our knowledge section to get to grips with the tax and regulatory details of choosing an ETF. For a specific calculation of the expected state subsidy and your subsidised final capital, the subsidy calculator is also available to you free of charge.

Choosing a provider and putting it into practice: how to fit your world ETF into your account

Once you've settled on a basic index structure, the practical implementation for your Altersvorsorgedepot follows. Two key decisions matter here: choosing the most suitable ETF product, and picking a certified, cost-effective account provider. Because the state subsidy and tax benefits for the new Altersvorsorgedepot are processed directly through your provider, your account and savings plan need to be precisely aligned. For thorough orientation beforehand, our knowledge section offers detailed, product-neutral analysis of the legal framework and subsidy structures.

The three core criteria for choosing an ETF product

For the common world indices, the German market typically offers numerous products from different providers. To filter out the most suitable security for your private retirement provision, you should follow the established standards set by the consumer advice centres (Verbraucherzentralen), which aim to maximise safety, liquidity and efficiency^[11]. Three factors above all play a decisive role here:

• Fund size and age: preferably choose ETFs with fund assets of at least 100 million euros that have already been established on the market for several years. Smaller funds carry a higher long-term risk of unplanned liquidation or fund mergers.
• Replication method: favour physically replicating ETFs (full or via optimised sampling), which buy the shares contained in the index directly. This avoids the counterparty risk that can arise with synthetic swap ETFs through exchange transactions with banks.
• Use of income (accumulation): accumulating ETFs are ideal for building long-term wealth during the accumulation phase. These automatically reinvest dividends straight back into the fund's assets, which maximises the compound-interest effect and minimises administrative effort in your account.

Criteria for choosing a provider and opening your account

Besides the ETF itself, your choice of account provider also has a substantial effect on the long-term net return of your retirement provision. Our portal Vorsorgedepot-Lotse offers the provider comparison tool as neutral decision support, helping you find commission-free or extremely low-cost brokers that offer fee-free ETF savings plans and are certified for the Altersvorsorgedepot. Today, almost all modern providers let you open your account fully digitally via video identification. You can then set up your chosen world-ETF savings plan in just a few clicks, building wealth for retirement automatically and consistently every month.