The Global ETF Smashing The S&P 500 (SPY) Right Now Still Has a Surprising U.S. Problem

Group 1 - The iShares MSCI ACWI ETF (ACWI) tracks over 2,900 stocks globally and has returned 21.2% over the past year, outperforming the S&P 500's 12.95% return [1] - ACWI has a net asset value of $26.9 billion and charges an expense ratio of 0.32%, which is higher than the comparable Vanguard Total World Stock ETF [1] - The top three holdings in ACWI—NVIDIA, Microsoft, and Apple—account for 12.3% of the fund, indicating a significant concentration in U.S. technology stocks [1] Group 2 - ACWI's portfolio turnover is only 3%, making it a genuinely passive investment option [1] - The fund's allocation includes 10-12% in emerging markets, which introduces additional currency and geopolitical risks [1] - Despite its global coverage, ACWI's heavy U.S. concentration may not provide the expected insulation from U.S. tech volatility [1]