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As in the topic. Would for example lower volatility justify lower return, (if the German funds are less volatile in the first place?).

Perhaps it's due to the German https://en.wikipedia.org/wiki/Mittelstand not being traded on the exchange? Any level materials which would help me understand this would be helpful, I have no problem with reading research papers type of material as well.

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    $\begingroup$ Hi, which index (funds) are you referring to? $\endgroup$ Commented Apr 5, 2022 at 6:23
  • $\begingroup$ Comment A. 3 years is too short a time period to be considered "long term returns", anything can happen in 3 years. To me long term returns means > 10 (or 20) years. Comment B. Returns vary among countries and it may be difficult to explain why this is so and whether it will continue, so for a german investor diversification across all EUR based stock markets makes sense to me, rather than only buying DAX. $\endgroup$
    – nbbo2
    Commented Apr 5, 2022 at 20:19
  • $\begingroup$ Comment C. Maybe German companies are not run in the interest of shareholders, but customers, employees and bank lenders have a higher priority in the companies policies. $\endgroup$
    – nbbo2
    Commented Apr 5, 2022 at 20:26

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