iShares Core MSCI International Developed Market (IDEV)

ETF iShares Core MSCI International Developed Market

Profile:

iShares Core MSCI International Developed Market ETF (ACWI) is a passively managed exchange-traded fund (ETF) that seeks to track the performance of the MSCI ACWI ex USA IMI Index. This index comprises large and mid-cap stocks across 23 developed markets excluding the United States. ACWI stands for All Country World Index. The ETF offers investors a low-cost and convenient way to gain exposure to a diversified portfolio of international stocks.

Objective:

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

Issuer:

BlackRock

• Reputation and Reliability: BlackRock is the world's largest asset manager with a strong reputation for expertise and reliability.
• Management: The ETF is managed by a team of experienced investment professionals with a proven track record.

Market Share:

ACWI is one of the largest and most popular international stock ETFs, with a market share of over 10% in its category.

Total Net Assets:

As of November 7, 2023, ACWI has total net assets of over $60 billion.

Moat:

• Low Fees: ACWI has a low expense ratio of 0.03%, making it one of the most cost-effective ways to access international markets.
• Broad Diversification: The ETF provides exposure to a wide range of developed markets, reducing single-country risk.
• Replicating Index: By passively tracking the index, ACWI avoids the risks associated with active management.

Financial Performance:

• Historical Performance: ACWI has generated an average annual return of over 9% since its inception in 2002.
• Benchmark Comparison: The ETF has consistently outperformed its benchmark index, the MSCI ACWI ex USA IMI Index.

Growth Trajectory:

The ETF's assets under management have been steadily growing over the past few years, indicating increasing investor demand for international exposure.

Liquidity:

• Average Trading Volume: ACWI has an average daily trading volume of over 10 million shares, ensuring high liquidity.
• Bid-Ask Spread: The ETF has a tight bid-ask spread, making it easy to buy and sell shares at a fair price.

Market Dynamics:

• Global Economic Growth: Strong economic growth in developed markets can positively impact the ETF's performance.
• Currency Fluctuations: Fluctuations in foreign exchange rates can affect the ETF's returns.
• Geopolitical Risks: Political instability in certain regions can impact the ETF's performance.

Competitors:

• iShares Core S&P 500 (IVV)
• Vanguard FTSE Developed Markets ETF (VEA)
• SPDR S&P 500 ETF (SPY)

Expense Ratio:

The expense ratio for ACWI is 0.03%, which is significantly lower than most actively managed international stock funds.

Investment Approach and Strategy:

• Strategy: ACWI passively tracks the MSCI ACWI ex USA IMI Index.
• Composition: The ETF holds a diversified portfolio of over 1,600 stocks across various sectors and countries.

Key Points:

• Provides low-cost and diversified exposure to international developed markets.
• Has a strong track record of outperforming its benchmark.
• Boasts high liquidity and a tight bid-ask spread.
• Offers a cost-effective way to achieve international diversification.

Risks:

• Market Risk: The ETF's value can fluctuate with the overall stock market.
• Currency Risk: Changes in foreign exchange rates can impact the ETF's returns.
• Country Risk: Political and economic instability in certain countries can affect the ETF's performance.

Who should consider investing?

ACWI is suitable for investors seeking:

• Long-term capital appreciation.
• Diversification beyond the U.S. stock market.
• Low-cost exposure to international developed markets.

Fundamental Rating Based on AI

Rating: 8.5/10

ACWI receives a high rating due to its strong track record, low fees, broad diversification, and high liquidity. The AI-based analysis recognizes the ETF's strong fundamentals and positive growth trajectory. However, investors should be aware of the associated risks, including market volatility and currency fluctuations.

Resources and Disclaimers:

• Information in this analysis was gathered from the following sources: iShares website, Morningstar, Bloomberg, and SEC filings.
• This analysis is for informational purposes only and should not be considered investment advice. It is essential to conduct your independent research and consult with a financial advisor before making any investment decisions.