ACWX - Why ACWX Offers More Potential Than VXUS
2024-04-23 08:00:00 ET
Summary
- Investors question the value of holding international stocks due to currency risk and underperformance against US stocks.
- This article compares two international equity ETFs, the iShares MSCI ACWI ex U.S. ETF versus the Vanguard Total International Stock Index Fund ETF.
- While past results slightly favor VXUS over ACWX, I give the Buy rating to ACWX for what I see as greater potential from its more concentrated portfolio compared to VXUS.
Introduction
When many investors look at the past decade or more, they ask, "Why hold International stocks that add currency risk along with their underperformance against US stocks?". The next chart shows that CAGR difference over various time periods....
Why ACWX Offers More Potential Than VXUS