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All-Country World Index Ex-U.S.

Trading Term

The All-Country World Index Ex-U.S. (ACWI Ex-U.S.) is a global equity index that tracks the performance of developed and emerging market stocks outside of the United States. It is a subset of the broader MSCI All-Country World Index (ACWI), which includes both U.S. and international stocks. By excluding U.S. stocks, the ACWI Ex-U.S. focuses on global markets, offering investors insight into the performance of the rest of the world’s equity markets.

Features of ACWI Ex-U.S.

  • Global Coverage (Excluding U.S.):
    The index covers more than 20 countries, including both developed markets (e.g., Europe, Japan, Australia) and emerging markets (e.g., China, India, Brazil).
  • Broad-Based Exposure:
    It includes large-cap, mid-cap, and small-cap stocks, providing broad exposure to different sectors such as technology, consumer goods, finance, and energy.
  • Benchmark for International Investment:
    The ACWI Ex-U.S. serves as a benchmark for international equity funds, ETFs, and institutional portfolios, allowing investors to track the performance of non-U.S. global equities.

The ACWI Ex-U.S. is valuable for investors seeking diversification beyond U.S. equities. Since U.S. stocks make up a significant portion of global market capitalization, the ACWI Ex-U.S. offers targeted exposure to international markets, which may perform differently from the U.S. market due to various economic conditions, geopolitical factors, and currency fluctuations. It also plays a role in allocating capital to global growth areas, especially in emerging markets that may offer higher growth potential.

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