ACWX Overview

Nvidia's Impact on the Market: The stock market is facing challenges largely attributed to Nvidia's performance and valuation.

Investor Concerns: There are growing concerns among investors regarding Nvidia's high stock price and its implications for the broader market.

U.S. Stock Performance: The S&P 500 has had a challenging year, remaining flat due to high valuations, concentration in certain indices, and a weaker dollar.

Foreign Equities Outperforming: The iShares MSCI ACWI ex U.S. ETF has outperformed the State Street SPDR S&P 500 ETF Trust by eight percentage points in 2025 and continues to lead by over seven points this year.

Shift in Market Dynamics: This marks a significant shift after nearly two decades of U.S. stock market dominance, raising questions about the sustainability of this trend.

Investment Professionals' Perspectives: Investment professionals are being surveyed on whether they will continue to allocate more resources to foreign markets amidst these changes.

Author Background: Brij S. Khurana is a fixed income portfolio manager and senior managing director at Wellington Management.

Expertise: His role involves managing fixed income investments, indicating a strong background in financial markets and investment strategies.

Winthrop Advisory Group's Investment: The Boston-based firm purchased 78,982 shares of the iShares MSCI ACWI ex U.S. ETF (ACWX) for approximately $4.9 million, increasing its total holdings to over 1 million shares valued at $68.1 million.

Performance of ACWX: The ETF has returned 21% over the past year, outperforming the S&P 500's 18% gain, indicating a positive trend in international equities.

Strategic Implications: Winthrop's increased stake in ACWX reflects growing confidence in international markets, suggesting a shift towards global diversification for long-term investors.

ETF Overview: The iShares MSCI ACWI ex U.S. ETF provides broad exposure to international equities, excluding U.S. companies, and aims to capture performance across both developed and emerging markets.

Global Equities Outperforming U.S. Stocks: In 2025, global equities have significantly outperformed Wall Street, with the iShares MSCI All Country World Index Ex U.S. ETF surging 20.5% year-to-date, marking the largest annual outperformance since 2009, driven by favorable trade deals and a weakening dollar.

Strong Performance of Global Stocks: Several global stocks have surpassed Palantir's impressive 144% gain in 2025, with companies from South Korea, Canada, and Germany achieving returns over 150%, fueled by increased defense demand and energy investments amidst a backdrop of shifting monetary policies.