SPDR® MSCI ACWI ex-US ETF (CWI)CWI

US ETF SPDR® MSCI ACWI ex-US ETF (ACWX)

Profile

Primary Focus: ACWX primarily invests in large and mid-cap stocks listed in developed and emerging markets outside the U.S. The ETF aims to offer diversified exposure to international equities, mimicking the MSCI ACWI ex USA IMI Index.

Asset Allocation: ACWX predominantly invests in equity securities, with a minimal allocation to fixed income securities.

Investment Strategy: The ETF adopts a passive management approach, using a representative sampling strategy to track the performance of the underlying index.

Objective

The primary investment goal of ACWX is to provide investors with long-term capital appreciation by mirroring the performance of the global equity market excluding the U.S.

Issuer

State Street Global Advisors (SSGA)

Reputation and Reliability: SSGA holds a notable reputation as a leading asset management firm with over $4 trillion in assets under management.

Management: SSGA boasts a team of experienced professionals with extensive knowledge and expertise in index-tracking strategies.

Market Share

ACWX is the second largest ETF in the international equity category, commanding approximately 7% of the market share.

Total Net Assets

As of November 1, 2023, ACWX has $63.97 billion in total net assets.

Moat

Global Diversification: ACWX offers access to a broad range of international equities, mitigating concentration risk and enhancing portfolio diversification.

Passive Management: The ETF's passive approach minimizes management fees and tracking errors, making it a cost-effective investment option.

Liquidity: ACWX possesses high trading volume, ensuring investors can easily enter and exit positions.

Financial Performance

Historical Performance: ACWX has historically delivered competitive returns, outperforming its benchmark index in several periods.

Benchmark Comparison: The ETF has consistently outperformed the MSCI ACWI ex USA IMI Index over the past five years.

Growth Trajectory

Market Growth: The global equity market is expected to continue growing, driven by economic expansion and increasing investor interest in international diversification.

ETF Growth: ACWX is likely to enjoy continued growth due to its strong track record, liquidity, and competitive expense ratio.

Liquidity

Average Trading Volume: ACWX boasts an average daily trading volume exceeding 10 million shares, ensuring high liquidity.

Bid-Ask Spread: The ETF maintains a tight bid-ask spread, signifying low transaction costs.

Market Dynamics

Economic Indicators: Global economic growth and political stability positively impact the ETF's performance.

Sector Growth Prospects: Emerging markets are expected to contribute significantly to future global economic growth.

Current Market Conditions: Rising interest rates and inflation could pose challenges to the ETF's performance.

Competitors

Competition:

• iShares Core MSCI All Country World ex US IMI ETF (ACWI)
• Vanguard FTSE All-World ex-US ETF (VEU)
• iShares MSCI EAFE ETF (EFA)

Market Share:

• ACWX: 7%
• ACWI: 12%
• VEU: 10%
• EFA: 9%

Expense Ratio

ACWX has a low expense ratio of 0.25%.

Investment Approach and Strategy

Strategy: The ETF passively tracks the MSCI ACWI ex USA IMI Index.

Composition: ACWX primarily invests in equities across various sectors and countries outside the U.S., with a minimal allocation to fixed income securities.

Key Points

• Global equity exposure: Provides diversified investment in international markets.
• Low expense ratio: Cost-effective investment option.
• Passive management: Minimizes tracking errors and management fees.
• High liquidity: Ensures easy entry and exit for investors.

Risks

Volatility: The ETF's value can fluctuate significantly due to global market movements.

Market Risk: The performance of the ETF is tied to the performance of the underlying international equity markets.

Who Should Consider Investing

• Investors seeking long-term capital appreciation through exposure to global equities.
• Investors looking for diversification beyond the U.S. market.
• Investors comfortable with moderate volatility.

Fundamental Rating Based on AI

Rating: 8/10

Justification: ACWX boasts a strong track record, competitive expense ratio, and high liquidity. The ETF offers well-diversified exposure to global equity markets, making it an attractive option for investors seeking international diversification. However, investors should be aware of the inherent volatility associated with international markets.

Resources and Disclaimers

Sources:

• State Street Global Advisors website
• ETF.com
• Morningstar

Disclaimer: The information provided is for educational purposes only and should not be considered investment advice. Investors should conduct their due diligence and consult with a financial advisor before making investment decisions.