When you search "BEL 20", you're probably wondering if it's a good investment. After all, it's Belgium's main stock index. It tracks 20 large companies you know, like KBC, AB InBev, and Proximus.
Here's the uncomfortable truth: the BEL 20 has delivered lower returns than nearly every major global index. Since 1994, it returned about 6.6% per year. The MSCI World? Roughly 8%. The S&P 500? Nearly 11%.
In this article, we'll compare the BEL 20 to these indexes and explain why you should diversify globally instead of betting everything on Belgium.
What is the BEL 20?
The BEL 20 is Belgium’s main stock market index. It has existed since 1991 and tracks the 20 largest companies listed on Euronext Brussels.
To be included, companies must meet strict rules. One important one is free float, enough of their shares must be available to trade on the market. Interestingly, a company does not need to be headquartered in Belgium. It simply needs to play a meaningful role in the Belgian economy.
You’ll recognise many of the names. Think of KBC, Proximus, Solvay, or AB InBev. Together, they represent key parts of the Belgian economy, like banking, telecoms, chemicals, and beer. At the time of writing, these are the 20 companies making up the BEL 20:
In short, the BEL 20 is often seen as a snapshot of “the Belgian stock market”.
Historical returns of the BEL 20
So how has the BEL 20 actually performed? Historically, the returns have been modest. Since 1994, the BEL 20 has delivered an average return of about 6.6% per year. If you had invested €10,000 back then, you’d have around €76,000 today. That’s thanks to compounding, and it means your money would have grown more than six times over roughly 30 years. That’s not terrible.
When you compare it to other markets, the gap becomes clear. In the next sections, we’ll compare the BEL 20 with other major indexes and explain why that might be the case.
BEL 20 vs MSCI World
Over the same period, the MSCI World index returned roughly 8% per year. That might not sound much higher than the BEL 20’s 6%, but over decades it makes a big difference.
Invest €10,000 in 1994 and you’d have about €124,000 today with the MSCI World, compared to roughly €76,000 with the BEL 20. In short, Belgian stocks have lagged behind the global average. The MSCI World is a global stock index made up of around 1,500 companies from 23 developed countries, including the US, Europe, Japan, and Australia. It spreads your money across dozens of countries and industries. That’s basically the opposite of the Belgium-focused BEL 20.
It’s no surprise that the MSCI World has performed better. That extra 2% in performance may seem small, but over 30 years it nearly doubled the end result.
The reason is simple. The MSCI World includes many of the world’s largest and fastest-growing companies that the BEL 20 completely misses. By investing only in Belgium, you exclude 99.7% of the global stock market. The BEL 20 also lacks exposure to entire sectors. Technology is a good example. Belgium has very little of it. Meanwhile, the MSCI World includes companies like Microsoft, Apple, Google, and Amazon, businesses that have driven a large part of stock market growth over the past decades.
The takeaway is clear. Global diversification has paid off. Over the long term, the MSCI World delivered higher returns with less risk than investing only in Belgian stocks. If you stick to the BEL 20 alone, you miss out on much of the world’s growth.
BEL 20 vs S&P 500
The S&P 500 is the main U.S. stock index. It tracks 500 of the largest companies in the United States and is often seen as a good proxy for the U.S. economy. That matters, because the U.S. alone represents about 60% of the global stock market.
So how does it compare to the BEL 20? In short: it has been much stronger. Over the past few decades (roughly 1994 to today), the S&P 500 delivered 10.9% per year on average. That’s well above the BEL 20’s 6.6%. Over time, that gap becomes huge.
The main reason is what’s inside the index. The S&P 500 is packed with global leaders like Apple, Microsoft, Google, Amazon, and NVIDIA. Many of them operate in fast-growing sectors such as technology and healthcare. These companies have driven a large part of global stock market growth.
The BEL 20 has none of these giants. It leans more towards banks, telecoms, and breweries, sectors that tend to grow more slowly. Scale and diversification also play a role. With 500 companies across many industries, the S&P 500 is far broader than an index of just 20 Belgian stocks. When one sector struggles, another can pick up the slack. The BEL 20 is smaller, more concentrated, and more exposed to local economic issues.
For a Belgian investor, the conclusion is straightforward. Historically, the S&P 500 has outperformed the BEL 20 by a wide margin. It offered higher growth, powered by innovation and globalised U.S. companies. The trade-off is that it’s 100% U.S. focused, so it’s still not globally diversified, but it clearly tapped into the world’s main growth engine.
BEL 20 vs the German DAX
The DAX is Germany’s main stock index. It tracks 40 of the largest companies listed in Frankfurt (it was 30 until 2021). As Belgium’s neighbour and Europe’s biggest economy, Germany makes for a natural comparison with the BEL 20. Both are single-country European indexes. The big difference is scale. Germany’s economy and stock market are much larger. The DAX includes industrial heavyweights like Siemens, BMW, Volkswagen, Bayer, and BASF. Many of these companies sell their products worldwide.
Historically, the DAX has done better than the BEL 20. Since its launch in 1988, it delivered just under 8.0% per year on average. That’s clearly higher than the BEL 20’s long-term return of roughly 6.6%. You can see this gap over time. From the mid-1990s onwards, the DAX delivered high single-digit annual returns, while the BEL 20 stayed closer to the mid single digits. If you had invested the same amount in both decades ago, the DAX would be worth noticeably more today.
The reasons are fairly straightforward. Germany’s economy is more diversified and strongly export-driven. DAX companies often operate globally and benefit from demand in sectors like cars, engineering, and chemicals. The BEL 20 simply doesn’t have that breadth. It lacks large automotive players and has very limited exposure to fast-growing sectors.
That said, the DAX is still a single-country index. Just like the BEL 20, it’s exposed to local factors such as European regulations, currency effects, and regional recessions. During crises like 2008, both indexes fell hard. The DAX recovered more strongly in some periods, partly thanks to its industrial and tech exposure.
For Belgian investors, the takeaway is this. Germany’s stock market has historically performed better than Belgium’s, roughly 8.0% versus 6.6% per year. But the DAX is still not a substitute for global diversification. Over the long term, a global index has remained the more balanced option.
BEL 20 vs Curvo Growth
So far, we’ve compared the BEL 20 with other stock indexes. Let’s now compare it with an actual investment portfolio: Curvo’s Growth portfolio.
The Growth portfolio is built for long-term growth through maximum diversification. It’s not tied to one country or one index. Instead, it invests in two broad Vanguard index funds that together cover almost the entire global stock market.
Concretely, the portfolio invests in:
- FTSE Developed All Cap Choice index, covering developed markets like the US, Europe, and Japan
- FTSE Emerging All Cap Choice index, covering emerging markets like China, India, and Brazil
Together, that means exposure to more than 7,500 companies across roughly 40 countries. Large companies, small companies, tech, healthcare, finance, industry, it’s all in there. This directly fixes the main weaknesses of the BEL 20. The Growth portfolio is global, not Belgium-only. It spans all sectors. And it doesn’t rely on just 20 companies.
Importantly, you’re not excluding Belgium. Belgian companies are still part of the portfolio, just in the right proportion. Belgium makes up only about 0.3% of the global stock market, so companies like AB InBev, KBC, and Solvay are included, but they’re no longer dominating your portfolio. You’re simply right-sizing Belgium relative to the world.
When it comes to performance, the comparison is clear. A globally diversified stock portfolio has historically delivered around 8% per year, in line with indexes like MSCI World or FTSE All-World. That’s higher than the BEL 20’s 6.6%, and achieved with less risk, thanks to diversification.
There’s also an important tax advantage for Belgian investors. Curvo’s Growth portfolio uses accumulating funds, which automatically reinvest dividends. That means you avoid the 30% Belgian dividend tax you’d typically pay with distributing ETFs that track the BEL 20. Over decades, that difference really adds up.
If your goal is long-term growth, a globally diversified portfolio like Curvo’s simply does what the BEL 20 can’t.
Downsides of the BEL 20
Before wrapping up, let’s quickly recap the main downsides of investing in the BEL 20 on its own. Most of these should feel familiar by now after reading the comparisons above.
You’re betting on one single country
When you invest only in the BEL 20, all your money depends on Belgium. If the Belgian economy slows down or faces political or economic issues, your entire portfolio suffers. This is a classic case of home bias. It feels safe to invest close to home, but it actually increases risk. Global investing spreads that risk across many countries instead of putting all your eggs in one basket.
There’s no tax-efficient BEL 20 ETF
Today, there’s only one ETF that tracks the BEL 20, the Amundi BEL 20 ETF (FR0000021842). It's expensive at 0.50% per year. And it’s also a distributing fund, which means it pays out dividends. For Belgian investors, those dividends are taxed at 30% every time.
Accumulating funds, which automatically reinvest dividends, are usually much more tax-efficient in Belgium. Unfortunately, no accumulating BEL 20 ETF exists. Over the long term, that dividend tax creates a constant drag on your returns.
Belgium is a tiny part of the world
Belgium represents about 0.3% of the global stock market. By investing mainly in the BEL 20, you’re ignoring 99.7% of the world’s investment opportunities. Many fast-growing companies and entire industries simply don’t exist in Belgium. Think global tech, large healthcare innovators, or major Asian manufacturers. As we’ve seen, global indexes have delivered higher returns, which suggests Belgian investors focused on the BEL 20 have been leaving money on the table.
You invest in only 20 companies
Twenty companies is very little diversification. Each company carries a lot of weight, so bad news at just one or two firms can drag down the entire index. This concentration risk is high. Some sectors dominate the BEL 20, like finance and materials, while others are barely present, especially technology. Compare that with the S&P 500’s 500 companies, and it becomes clear how narrow the BEL 20 really is.
Conclusion
The BEL 20 reflects the Belgian stock market, but as we've seen, it's not built for long-term growth. With just 20 companies and a historical average return of roughly 6.6% per year, it lags behind global indexes by a meaningful margin. That gap compounds over decades and can cost you tens of thousands of euros in missed returns.
The good news? You don't need to choose between Belgium and the world. A globally diversified portfolio includes Belgian stocks in their proper weight, about 0.3% of your holdings, while giving you access to thousands of companies across dozens of countries. That's how you balance familiarity with smart investing.
If you want to grow your wealth over the long term, think global. Start with a broad index fund or a diversified portfolio that spreads your risk and captures growth wherever it happens. Your future self will thank you for looking beyond Belgium's borders.