ETFs explained simply? – Beginner’s guide to exchange traded funds

Concerns about inflation have always been justified, even in 2025. Investors are therefore looking for stable strategies to protect their capital from losing purchasing power. One of the most effective answers to the question of inflation protection are ETF shares. But why are equity ETFs, of all things, the key to this? And what role does the innovative product “5% FI Inflation Protection PLUS” play in this?

Why a lack of inflation protection jeopardizes assets

Inflation reduces purchasing power – and does so gradually. What costs 100 euros today may be significantly more expensive in a few years’ time. If you simply leave money in your account, it loses value in real terms. For investors, this means that they need active inflation protection that not only preserves value, but also offers potential returns.

ETF or shares? Why the combination is crucial

Many investors ask themselves: ETF or shares, which offers better protection against inflation? The answer is that ETFs on equity markets combine the best of both worlds. They spread risks across many companies and sectors, track entire indices such as the MSCI World or the Euro Stoxx 50 and remain cost-efficient.

Broadly diversified ETF shares on leading global indices in particular have proven to be robust against inflation in the past. This is because many of these companies can pass on rising prices to customers – a natural protective mechanism against inflation.

FI Inflation Protection PLUS – an intelligent combination

With the “5% FI Inflation Protection PLUS” bond, FI Investments offers a particularly clever solution: the product combines a fixed interest rate of 5% p.a. with a profit-related participation of 20% in the annual average performance of three major share indices: S&P 500, MSCI World and Euro Stoxx 50.

What does that mean in concrete terms?

• Fixed interest rate: 5% p.a. – regardless of the market situation, payable quarterly
• Profit participation: 20 % on the average return of the reference indices
• Term: Until 31.03.2027 – ideal for medium-term investors
• No negative participation: If the indices perform negatively, the bonus payment is forfeited, but there is no loss beyond this, in which case “only” the fixed interest of 5% per year is paid.

This structure allows investors to take advantage of the earnings opportunities offered by equity ETFs without fully bearing their risks. The combination of a fixed interest rate and possible profit participation makes FI Inflation Protection PLUS an attractive building block for anyone who wants to focus on inflation protection in 2025 and integrate the strength of ETF shares into their portfolio.

ETF shares as a strategic building block for 2025 and beyond

In a diversified portfolio, the question “ETF or equities?” should no longer be an either-or decision. Rather, it is a question of intelligent interaction. For investors who want to focus on inflation protection, equity ETFs will continue to offer excellent prospects in 2025:

• Transparency and flexibility: can be traded at any time, cost-effective, clearly traceable
• Long-term performance: participation in global growth
• Inflation resistance through tangible assets: companies with pricing power

Inflation protection through ETF shares – simple, effective, future-oriented

Whether with a classic index ETF or an intelligent product such as “FI Inflationsschutz PLUS”: investing in ETF shares means investing in the future. And protect your capital against the creeping threat of inflation – in 2025 and beyond. If you would like to find out more, please contact us!