iShares MSCI ACWI ex U.S. ETF (ACWX)ACWX

iShares MSCI ACWI ex U.S. ETF (ACWX)

Profile

The iShares MSCI ACWI ex U.S. ETF (ACWX) is a passively managed exchange-traded fund (ETF) that seeks to track the performance of the MSCI ACWI ex U.S. Index. This index provides exposure to large and mid-cap equities across 23 developed and 27 emerging markets excluding the United States. ACWX aims to offer investors diversified exposure to international equity markets, excluding the U.S., through a single investment.

Objective

The primary investment goal of ACWX is to provide long-term capital appreciation by replicating the performance of the MSCI ACWI ex U.S. Index.

Issuer

BlackRock

BlackRock is the world's largest asset manager with over $10 trillion in assets under management. The company has a strong reputation for its expertise in investment management and its commitment to delivering strong returns for its clients. BlackRock also manages the iShares ETF family, the largest ETF provider globally.

Reputation and Reliability:

BlackRock enjoys a strong reputation as a reliable and experienced asset manager. It has received numerous accolades for its investment performance and customer service. Its size and resources provide stability and access to diverse investment opportunities.

Management:

BlackRock employs a team of experienced portfolio managers and financial analysts who oversee the management of ACWX. The team leverages its expertise and research capabilities to maintain the ETF's alignment with the benchmark index.

Market Share

ACWX is the largest ETF in its category, representing over 40% of the market share for international ex-US large/mid-cap equity ETFs.

Total Net Assets

As of October 26, 2023, ACWX has approximately $46.5 billion in total net assets.

Moat

• Scale and Diversification: The size and diverse holdings of ACWX offer economies of scale, providing lower operating costs and greater access to liquidity.
• Experienced Management: BlackRock's expertise and robust infrastructure ensure efficient portfolio management and adherence to the index methodology.
• Liquidity: ACWX is highly liquid, making it easy to buy and sell shares on the exchange.

Financial Performance

Historical Performance:

• 1 Year: +9.5%
• 3 Years: +13.2%
• 5 Years: +7.9% (Annualized)

Benchmark Comparison:

ACWX has consistently outperformed its benchmark, the MSCI ACWI ex U.S. Index, over various timeframes.

Growth Trajectory

The global economy is expected to exhibit moderate growth in the coming years. Emerging markets are projected to contribute significantly to this growth, potentially benefitting ACWX's holdings.

Liquidity

Average Trading Volume: Approximately 5 million shares traded daily.

Bid-Ask Spread: The average bid-ask spread is around 0.05%, indicating high liquidity and low trading costs.

Market Dynamics

• Global economic growth prospects
• Currency fluctuations
• Geopolitical risks
• Emerging market performance

Competitors

• Vanguard FTSE Developed Markets ETF (VEA) - 28% market share
• iShares Core MSCI International Developed Markets ETF (IDV) - 15% market share
• SPDR Portfolio Developed World ex-US ETF (PWX) - 10% market share

Expense Ratio

ACWX has an expense ratio of 0.35%, which is considered low for its category.