FXI - ACWX: International Stocks Have Not Delivered
2024-01-22 22:15:04 ET
Summary
- The iShares MSCI ACWI ex U.S. ETF is an equities ETF that offers exposure to international mid- and large-capitalization equities.
- ACWX has a diversified geographic approach, with Japan being the top concentration at 15% of the portfolio.
- ACWX has failed to deliver robust long-term returns, with a 10-year annualized return of only 3.5%.
- The fund is a large aggregator that contains underpriced political risk.
- The fund has been dragged down by its China exposure in the past three years, despite outperformance in its India and Taiwan assets.
Thesis
The iShares MSCI ACWI ex U.S. ETF ( ACWX ) is an equities exchange traded fund. The vehicle seeks to track the investment results of an index composed of large- and mid-capitalization non-U.S. equities. On a first glance the fund would seem an interesting diversification tool, offering retail investors exposure to international mid- and large-capitalization equities....
ACWX: International Stocks Have Not Delivered