Diversify With Global ETFS: ACWX's Higher Yield or URTH's Stronger Growth?

Core Insights - The iShares MSCI World ETF (URTH) and the iShares MSCI ACWI ex US ETF (ACWX) differ in cost and composition, with ACWX being more expensive but yielding higher dividends, while URTH is heavily weighted towards U.S. technology stocks [2][3] Cost & Size Comparison - URTH has an expense ratio of 0.24% and AUM of $6.74 billion, while ACWX has a higher expense ratio of 0.32% and AUM of $7.87 billion [4] - The 1-year return for URTH is 23.08%, compared to ACWX's 35.9%, and the dividend yield for URTH is 1.5% versus ACWX's 2.83% [4] Performance & Risk Comparison - Over the past five years, URTH experienced a maximum drawdown of -26.06%, while ACWX had a deeper drawdown of -30.06% [6] - The growth of $1,000 over five years is $1,644 for URTH and $1,251 for ACWX, indicating better long-term growth for URTH despite ACWX's recent outperformance [6][9] Portfolio Composition - ACWX holds 1,751 non-U.S. companies, with a sector emphasis on financial services (25%), technology (15%), and industrials (15%), featuring top positions like Taiwan Semiconductor Manufacturing and Tencent Holdings [7] - URTH covers 1,319 developed market stocks, heavily weighted towards U.S. technology, with major holdings including Nvidia, Apple, and Microsoft, resulting in a sector allocation of 26% technology and 17% financial services [8][9] Investment Implications - Both ETFs provide international diversification but cater to different investor preferences: URTH for those seeking U.S.-centric exposure and ACWX for those wanting to avoid U.S. equity dominance [11]