iShares MSCI ACWI ex US ETF

ACWX

Market cap $11.5B

Investors have poured money into exchange-traded funds at a rapid pace in the first half of 2026, demonstrating an unrelenting appetite for stocks associated with the AI theme.

SUMMARY The Fed is on hold as inflation concerns continue. The US Trend remains positive and has regained short-term momentum.

For investors building their first international allocation, the choice often narrows to two funds that look like twins on the surface: iShares MSCI ACWI ex U.S.

The United States is two months into its most consequential military operation since Iraq. Oil prices have surged more than 55%, and the IMF has cut its global growth forecast.

The iShares MSCI ACWI ex US ETF has marginally outperformed the S&P 500 so far in 2026. This comes as a significant allocation to energy-importing countries in Europe and Asia is somewhat offset by cheaper valuations. While near-term visibility is naturally blurred amid the ongoing Iran war, opportunistic long-term investors may find value in ACWX.

Actively managed ETFs in the U.S. gathered $73 billion of new money in February and, thanks to model allocation changes made by BlackRock last week, are poised for another strong month. BlackRock's strategy of increasingly leaning into active ETFs via its model portfolios has become a powerful catalyst.

Bought 367,572 shares of ACWX with an estimated trade size of around $24.35 million. Quarter-end stake value rose by $24.70 million.

Since April 2023 (about 2 weeks after Chat GPT-4 was released to much fanfare) through this most recent New Years Eve, the most straightforward decision for investors would have been to put everything into the S&P 500 and forget it. Which is to say, investing had gotten pretty boring the last few years.

The biggest winners this year are all abroad. Emerging markets stocks represented by the iShares MSCI Emerging Markets ETF (EEM) are higher by more than 6% this year, while all non-U.S. equities in the iShares MSCI ACWI ex U.S. ETF (ACWX) gaining more than 5%.

For years, US-heavy portfolios were the path of least resistance. But the performance gap is narrowing, and investors who assumed international exposure was optional are reconsidering.