iShares MSCI ACWI ex US ETF

ACWX

Market cap $7.29B

Principal International Equity ETF is the top-ranked Foreign Large Blend ETF on Seeking Alpha's Quant Ranking system since its November 2024 launch. PIEQ has outperformed the iShares MSCI ACWI ex U.S. ETF, its benchmark and a standard core international ETF, since inception. PIEQ's strategy focuses on concentrated, all-weather holdings, deep fundamental analysis, and both growth and value, with significant exposure to Europe, Asia, and emerging markets.

International ETFs like FDT, IDV, FDTS, EFAS & FLEU soared as investors pivot from pricey and uncertain policy-driven U.S. markets to undervalued international plays.

Boston-based Winthrop Advisory Group bought 78,982 additional shares of ACWX for an estimated $4.9 million in the third quarter. The move represents about 0.4% of reportable assets under management as of September 30.

Company payouts are stronger compared to previous years, despite brewing macro risks. A weaker dollar and resilient consumer spending support record earnings and stock prices, even amid cautious CEO sentiment. We spot key events as the calendar flips to October, along with happenings at the biggest U.S. bank.

iShares MSCI ACWI ex U.S. ETF is rated a buy as a stable, diversified core holding for global equity exposure outside the US. Invesco S&P International Developed Momentum ETF is also rated a buy but is best used as a tactical complement due to high turnover and sector concentration. IDMO offers superior risk-adjusted returns in bull markets but carries uncertainty from its momentum strategy and 115% annual portfolio turnover.

Now in the home stretch of Q3, international stocks have had a banner year in 2025. Whereas the United States' S&P 500 is currently up 12.7% year to date, the MSCI All World Ex. US ETFs have gained well over 24% in that same span. Italy (EWI) is up over 45% on a year to date basis. That puts it on pace for the ETF's largest annual gain on record (it began trading in March 1996) if it holds.

U.S. stocks continued their momentum with a solid +2.30% return, while world stocks pulled back -1.12% after their strong June performance. The commodity surge pushed this asset class to +4.73% year-to-date, representing a remarkable turnaround from the challenging April decline.

Investors keep piling into exchange-traded funds — with the latest monthly flow data reflecting some limit to their appetite for risk in the U.S., as well as a desire to diversify internationally.

Global financial markets remain in focus this week after the US launched airstrikes on three Iranian nuclear facilities over the weekend, to which Tehran retaliated with an attack on the US bases in Qatar.

ACWX offers broad, diversified exposure to non-US equities, providing a valuable tool for geographic diversification without overlapping US holdings. The ETF boasts strong liquidity and reasonable expenses, outperforming many peers in cost and tradability, making it a practical choice for international allocation. Shifting macroeconomic trends, including US policy uncertainty and improving international growth, support increasing non-US equity exposure for better risk-adjusted returns.