Xtrackers MSCI All World ex U.S. Hedged Equity ETF (DBAW)

US ETF Xtrackers MSCI All World ex U.S. Hedged Equity ETF (ACWX)

Profile

ACWX is an ETF that tracks the MSCI All Country World ex USA Index, offering exposure to large and mid-cap equities from developed and emerging markets excluding the United States. It utilizes a currency-hedged approach, mitigating currency risk for USD-based investors.

Objective

The primary objective of ACWX is to provide long-term capital appreciation by replicating the performance of the MSCI All Country World ex USA Index, net of expenses.

Issuer

DWS Group is the issuer of ACWX, a leading global asset manager with over €892 billion in assets under management (as of June 30, 2023). DWS boasts a strong reputation and long-standing track record in the financial industry.

Market Share

ACWX commands a significant market share within its category. As of November 2023, it holds approximately 10% of the global market share for ex-US equity ETFs.

Total Net Assets

ACWX boasts over $10 billion in total net assets, reflecting its popularity and investor confidence.

Moat

ACWX's competitive advantages include:

• Broad diversification: Provides exposure to a wide range of international markets, mitigating single-country risk.
• Currency-hedged approach: Minimizes currency fluctuations for USD investors.
• Low expense ratio: Offers a competitive expense ratio compared to similar ETFs.
• Experienced management team: DWS has a proven track record in managing index-tracking funds.

Financial Performance

ACWX has historically delivered strong returns, outperforming its benchmark index over various timeframes. However, past performance is not indicative of future results.

Benchmark Comparison: ACWX has consistently outperformed the MSCI All Country World ex USA Index (unhedged) over the past 3 and 5 years.

Growth Trajectory

The global equity market is expected to continue growing, driven by factors such as economic expansion and rising corporate profits. ACWX is well-positioned to benefit from this growth, given its broad market exposure.

Liquidity

ACWX boasts high trading volume, ensuring easy buying and selling.

Average Trading Volume: Over 1 million shares traded daily.

Bid-Ask Spread: Tight bid-ask spread, minimizing trading costs.

Market Dynamics

Factors affecting ACWX's market environment include:

• Global economic growth: Strong economic growth can positively impact international equities.
• Interest rate hikes: Rising interest rates can lead to market volatility.
• Geopolitical events: Global events can impact specific markets and sectors.

Competitors

• iShares MSCI ACWI ex USA ETF (ACWX) - 25% market share
• Vanguard FTSE All-World ex-US ETF (VEU) - 20% market share
• iShares Core MSCI All Country World ex US IMI ETF (ACWI) - 15% market share

Expense Ratio

ACWX has an expense ratio of 0.30%, which is considered competitive within its category.

Investment Approach and Strategy

• Strategy: Tracks the MSCI All Country World ex USA Index.
• Composition: Invests in a diversified portfolio of large and mid-cap stocks from developed and emerging markets excluding the US.

Key Points

• Broad diversification: Reduces single-country risk.
• Currency-hedged: Minimizes currency risk for USD investors.
• Competitive expense ratio: Lowers investment costs.
• Strong track record: Delivered consistent returns exceeding the benchmark.
• High liquidity: Easy to buy and sell.

Risks

• Market volatility: Global equity markets can experience significant fluctuations.
• Currency risk: Currency fluctuations can impact returns for non-hedged investors.
• Emerging market risk: Emerging markets can be more volatile than developed markets.

Who Should Consider Investing

• Investors seeking global equity exposure excluding the US.
• Investors looking for a currency-hedged approach.
• Investors with a long-term investment horizon.

Fundamental Rating Based on AI

7.5 out of 10

ACWX receives a solid rating based on its strong track record, competitive fees, and experienced management team. However, investors should be aware of the inherent risks associated with global equity markets.

Resources and Disclaimers

• DWS Xtrackers ACWX ETF website: https://www.dws.com/en-us/professional-investors/etfs/etf-library/x-trackers-msci-all-world-ex-us-hedged-equity-ucits-etf-1c-acc-eur-hedged-dist/
• MSCI All Country World ex USA Index: https://www.msci.com/index-performance/country/acwi-ex-usa-imi

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