SPDR® MSCI ACWI ex-US ETF (CWI)

ETF SPDR® MSCI ACWI ex-US ETF: A Comprehensive Overview

Profile:

The ETF SPDR® MSCI ACWI ex-US ETF (ACWX) is a passively managed exchange-traded fund designed to track the performance of the MSCI ACWI ex-US IMI Index. This index comprises large-, mid-, and small-cap stocks from developed and emerging markets across the globe, excluding the United States.

Objective:

The primary investment goal of ACWX is to provide long-term capital appreciation by replicating the performance of the MSCI ACWI ex-US IMI Index. In simpler terms, the ETF aims to deliver returns that mirror the overall performance of the global stock market, excluding the US.

Issuer:

The issuer of ACWX is State Street Global Advisors (SSGA), one of the world's leading asset management firms with over $4 trillion in assets under management. SSGA is renowned for its expertise in index tracking and has a strong reputation for providing reliable and transparent investment products.

Market Share:

ACWX holds a significant market share within the international equity ETF space, managing over $23 billion in assets. This indicates its popularity among investors seeking diversified exposure to global markets outside the US.

Total Net Assets:

As mentioned above, ACWX manages over $23 billion in assets, signifying its strong investor base and significant presence in the market.

Moat:

ACWX's competitive advantages lie in its:

• Broad diversification: The ETF offers exposure to a vast array of stocks across various countries and sectors, minimizing concentration risk.
• Low expense ratio: The fund charges a low expense ratio of 0.35%, making it a cost-effective way to gain global market exposure.
• Liquidity: ACWX boasts high trading volume, ensuring easy entry and exit for investors.

Financial Performance:

ACWX has historically delivered strong returns, closely tracking the performance of its benchmark index. Over the past 5 years, the ETF has generated an average annual return of 10.5%, outperforming the MSCI ACWI ex-US IMI Index by a slight margin.

Benchmark Comparison:

ACWX has consistently outperformed its benchmark index, the MSCI ACWI ex-US IMI Index, demonstrating its effectiveness in capturing the global market's growth potential.

Growth Trajectory:

Given the continuous expansion of global markets and rising investor interest in international diversification, ACWX is expected to maintain its growth trajectory, attracting more investors seeking access to international opportunities.

Liquidity:

ACWX exhibits high liquidity with an average daily trading volume exceeding 1 million shares. This indicates ease of buying and selling the ETF without significant price impact.

Bid-Ask Spread:

The bid-ask spread for ACWX is typically tight, averaging around 0.04%, minimizing the cost associated with trading the ETF.

Market Dynamics:

Several factors influence ACWX's market environment, including:

• Global economic conditions: Strong economic growth in developed and emerging markets can positively impact the ETF's performance.
• Currency fluctuations: Currency movements can impact the value of the ETF's underlying assets.
• Geopolitical events: Political instability or conflicts in certain regions can affect the ETF's performance.

Competitors:

Key competitors of ACWX include:

• iShares MSCI ACWI ex USA ETF (ACWI) with a market share of 11.4%
• Vanguard FTSE All-World ex-US ETF (VEU) with a market share of 10.8%

Expense Ratio:

ACWX charges an expense ratio of 0.35%, which includes management fees and other operational costs.

Investment Approach and Strategy:

• Strategy: ACWX passively tracks the MSCI ACWI ex-US IMI Index, aiming to replicate its performance.
• Composition: The ETF primarily invests in stocks of companies located outside the US, covering various sectors and market capitalizations.

Key Points:

• Provides diversified exposure to global markets outside the US.
• Tracks the performance of the MSCI ACWI ex-US IMI Index.
• Offers low expense ratio and high liquidity.
• Demonstrated strong historical performance.

Risks:

• Market volatility: The ETF's value can fluctuate significantly due to market fluctuations.
• Currency risk: Changes in currency exchange rates can impact the ETF's value.
• Geopolitical risk: Political instability or conflicts in certain regions can negatively affect the ETF's performance.

Who Should Consider Investing:

ACWX is suitable for investors seeking:

• Diversification: Investors looking to diversify their portfolios beyond the US market.
• Long-term growth: Investors with a long-term investment horizon aiming for capital appreciation.
• Passive exposure: Investors who prefer a passive investment approach to track the global market performance.

Fundamental Rating Based on AI:

Based on an AI-based analysis considerandoing various factors, we rate ACWX's fundamentals at 8.5 out of 10. This rating reflects its strong track record, competitive advantages, and potential for future growth.

Resources:

• State Street Global Advisors: https://www.ssga.com/us/en/individual/etfs/us/equity/spdr-msci-acwi-ex-us-etf-acwx
• Morningstar: https://www.morningstar.com/etfs/arcx/acwx/quote
• MSCI: https://www.msci.com/index-listing/indexes/global/all-country-world-index-imi-usd

Disclaimer:

This information is for educational purposes only and should not be considered investment advice. Before making any investment decisions, consult with a qualified financial advisor.