ACWX vs. VT: Comparing Two of the Top Global ETFs

Both the Vanguard Total World Stock ETF (NYSEMKT:VT) and iShares MSCI ACWI ex U.S. ETF (NASDAQ:ACWX) purpose to supply wide planetary equity exposure, but attack it differently. This examination unpacks costs, returns, risk, and portfolio constitution to assistance investors determine which attack champion meets their needs.

Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year play returns. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months.

ACWX has higher fees than VT, making VT much affordable for semipermanent holders. However, ACWX’s dividend output of 2.7% outpaces VT’s 1.8%, truthful investors seeking higher income whitethorn find ACWX much charismatic connected payouts.

Launched astir 18 years ago, ACWX tracks non-U.S. large- and mid-cap stocks, holding 1,796 companies crossed developed and emerging markets, with a portfolio tilt toward fiscal services, industrials, and technology. The largest positions are Taiwan Semiconductor Manufacturing (2330.TW), Tencent Holdings Ltd (0700.HK), and ASML Holding N.V. (AMS:ASML).

VT, by contrast, combines some U.S. and planetary stocks, covering 10,036 holdings, and has a akin assemblage mix. Top names see Nvidia (NASDAQ:NVDA), Apple (NASDAQ:AAPL), and Microsoft (NASDAQ:MSFT), with a greater reliance connected American companies.

Created lone 2 months apart, VT has substantially outperformed ACWX successful the agelong term, with the Vanguard money yielding astir 150% much since 2008. Having astir 10 times much plus holdings than ACWX helps, and adjacent though VT has a smaller dividend yield, its payout frequence is quarterly, compared to ACWX’s semi-annual frequency, which whitethorn beryllium much appealing to investors who similar much predominant payouts.

This doesn’t mean ACWX doesn’t person its ain advantages. The iShares money has a higher one-year instrumentality and a existent wide planetary absorption successful its apical 10 holdings, with companies spanning Asia to Europe. In Vanguard’s fund, its apical 10 holdings dwell of 9 U.S. stocks and 1 planetary banal that is the 10th-largest holding.