iShares MSCI ACWI ETF

ACWI

Market cap $24B

iShares MSCI ACWI ETF offers broad global equity exposure, with significant concentration in US mega-cap technology stocks. ACWI serves well as a core portfolio holding or equity placeholder, providing diversified beta growth across developed and emerging markets. While ACWI's performance is solid, the Vanguard Total World Stock Index Fund ETF offers similar exposure at a lower fee.

Amploius Wealth sold 25,217 shares of ACWI for an estimated $3.3 million based on the average share price for the third quarter. The transaction represents about 0.3% of 13F reportable assets under management for the period.

U.S. valuations are historically high, with average P/E ratios near 30x, which could lead to disappointing returns over the medium term. ACWI offers global diversification, but still allocates over 60% to the U.S., the top holdings are concentrated in expensive mega-cap tech stocks. The top 20 holdings are trading at an average P/E ratio of 43x, while the average holding demands a 30x earnings multiple.

The weather has warmed up and schools are about to let out in the Northeast. That means more time for fun for teenagers like my 15-year old son, who enjoys listening to music and playing video games.

Global equities hit a record high as AI optimism, easing trade tensions, and solid global data drive ETF momentum worldwide.

ACWI offers unmatched global equity diversification, covering 85% of global market cap across 23 developed and 26 emerging markets at a low 0.32% fee. This ETF is ideal for investors seeking broad, hassle-free exposure to global equities, serving as a strong portfolio core or anchor. While ACWI guarantees average market returns, it removes the need to time regions or sectors, providing peace of mind and simplicity.

Wall Street experienced massive volatility in the first quarter of 2025, largely due to trade uncertainty. International economies and gold outperformed.

A more balanced portfolio can handle somber U.S. equity performance, as long as strong equity returns from abroad continue.

I am upgrading ACWI from a hold to a buy, citing its decent valuation and improved risk/reward profile despite recent market volatility. ACWI's P/E ratio has retreated to under 18, and its forward 12-month yield is 1.83%, outperforming the S&P 500's yield. The ETF is well-diversified, with less concentration in US stocks and significant international equity positions, enhancing its stability.

ACWI has a high exposure to value stocks, providing stability but underperforming growth-oriented funds like ACWI. ACWV's higher exposure to defensive sectors and lower exposure to technology limits its ability to outperform ACWI in the long run. ACWV is ideal for risk-averse investors seeking stability, but less suitable for those aiming for strong long-term returns.