ACWI ETF

Investors are becoming more positive about US stocks as they look forward to 2025, thanks to rising optimism about the growth of the US economy and new policies from the Trump administration.

I have a hold rating on ACWI because its valuation is not very strong and I expect some volatility in the near future, particularly due to negative seasonal trends and technical indicators. ACWI is currently trading at around 18 times its earnings, with a projected earnings growth of 13.6% in 2025, but its valuation seems a bit high. This ETF provides more diversification in terms of equity and style compared to the S&P 500, especially in the Information Technology and Financial sectors.

The French election: I discuss the investment implications of three possible scenarios: a far-right majority, a far-left majority, and a temporary administrative solution. We received two important data points that could bring us closer to the long-awaited start of Federal Reserve rate cuts.

Wall Street has delivered a moderate performance in the second quarter of 2024.

The iShares MSCI ACWI ETF owns a portfolio of 2,400 large-cap and mid-cap stocks. ACWI has shown strong returns since 2022 but lags behind other funds like iShares MSCI World ETF and the S&P 500 index. ACWI's long-term return is inferior to the S&P 500 index due to lower exposure to technology sector and inclusion of emerging markets stocks.

DGT: A Good Way To Access The Globe

Global markets have delivered substantial gains for investors, with interest rate hikes on hold and projections of rate cuts in the US and Europe. The iShares MSCI ACWI ETF offers diversification in global markets, but its deep diversification and relative underperformance make it unattractive. Comparisons with peers show that the ACWI ETF has higher costs and lower dividend yields, making it less appealing for long-term investors.

DXJ: Capitalizing On Japan's Bull Market, Mitigating FX Risk

Global equities are still in a bear market, far from previous highs. The iShares MSCI ACWI ETF is a good option for diversifying portfolios globally. The ACWI ETF has performed well due to the strong performance of U.S. stocks, particularly in the technology sector.