The ETF tracks the MSCI ACWI ex USA index and holds large- and mid-cap stocks across developed and emerging markets outside the United States, weighted by market capitalization. It is a core ETF that gives broad exposure to non-US global equities through a single holding.

It suits long-term investors who want to widen their geographic diversification beyond the US, as well as those who want to hold developed and emerging markets together in one product.

It is a passive (index-tracking) ETF managed by BlackRock (iShares).

The ETF holds large- and mid-cap stocks from developed and emerging markets outside the US in proportion to their market capitalization, tracking the performance of the broader non-US global equity market. Its wide range of holdings provides diversification across countries and currencies, and rebalancing is reflected periodically according to the index methodology.

• Broad non-US exposure covering both developed and emerging markets
• Global geographic diversification through a single holding

Assets under management (AUM) stand at $17.7B, and the total expense ratio is 0.32% per year.

Its distinguishing feature versus similar ETFs focused on developed markets is the inclusion of emerging markets, and expense levels vary by category.

The ETF moves with non-US global equity markets, and its short-term performance is influenced by the strength of the dollar, emerging-market economic conditions, and regional interest rate environments. Regional factors that differ from those in the US market tend to be reflected in its returns.

Fund flows continue in line with demand for geographic diversification from US-concentrated portfolios, and in phases when global risk appetite rises, flows can fluctuate alongside growing interest in the emerging-market allocation.

Its strength is broad geographic diversification spanning developed and emerging markets outside the US, while exposure to currency swings and emerging-market volatility is cited as a drawback.

The VEA, IEFA, and EFA shown in the table are international ETFs centered on developed markets and excluding emerging markets, so their exposure range differs from ACWX, which includes emerging markets. VXUS is a lower-cost direct substitute that, like ACWX, covers the entire world outside the US, while VT is a global ETF that includes the US as well. In addition, if you want the same broad non-US exposure, you can also consider VEU; to hold emerging markets separately, VWO; and as a global core that includes the US, ACWI.

Here are the points to check before investing in ACWX. It is useful as a non-US global core asset, but it is wise to check currency fluctuations, emerging-market weighting, expense level, and regional composition in advance to make sure they fit your own portfolio.

Currency fluctuations and emerging-market weighting are the main drivers of short-term volatility. In phases of global risk aversion, non-US assets can weaken together, so the possibility of short-term losses should be taken into account.

It is a suitable ETF for use as a core holding in non-US global equities. If you want to hold emerging markets together in one product, consider ACWX; if a lower expense ratio is the priority, it is worth comparing VXUS and VEU.