ACWX ETF

The iShares MSCI ACWI ex U.S. ETF provides a diverse range of 1,800 international stocks, but it has less investment in high-growth technology sectors, which may restrict long-term gains. With global monetary policies becoming more relaxed and inflation decreasing, ACWX is likely to perform well in the short term, and earnings growth is anticipated to rise until 2026. Currently, ACWX has a reasonable valuation of 13.2 times forward price-to-earnings, while the S&P 500 is valued higher at 22.0 times.

iShares MSCI ACWI ex U.S. ETF offers broad international exposure excluding the US, making it attractive for long-term investors seeking diversification. The ACWX ETF has highly diversified holdings with no position making up more than 2.88% of the fund, providing a balanced mix of international equities. The fund compares well against peers like Vanguard Total International Stock Index Fund ETF Shares and offers exposure to developed and emerging markets at a relatively low cost.

The iShares MSCI ACWI ex U.S. ETF is an equities ETF that offers exposure to international mid- and large-capitalization equities. ACWX has a diversified geographic approach, with Japan being the top concentration at 15% of the portfolio. ACWX has failed to deliver robust long-term returns, with a 10-year annualized return of only 3.5%.

U.S. investors know how successful a strategy of investing in the S&P 500 through an index fund has been, especially as large technology companies have led such strong growth over the past decade. But markets change, as is being proven by the rise in U.S. interest rates.

Now is an opportune time for investors with home country biases to add international exposure. With international stocks trading at a discount relative to past valuations, there is significant upside opportunity.