The iShares MSCI World ETF (NYSEMKT:URTH) has a lower expense ratio but a lower dividend yield compared to the iShares MSCI ACWI ex US ETF (NASDAQ:ACWX). URTH is heavily weighted towards U.S. tech giants, while ACWX focuses on non-U.S. equities with an emphasis on financial services.
ACWX has a higher expense ratio than URTH but offers a significantly higher dividend yield. Additionally, ACWX excludes U.S. stocks in its portfolio, focusing solely on large- and mid-cap companies outside the United States. In contrast, URTH has a strong U.S. bias and is dominated by American tech names.
Over the past year, ACWX has outperformed URTH, despite experiencing a deeper five-year drawdown and lower long-term growth. ACWX charges a higher fee than URTH but delivers a higher dividend yield, which may appeal to income-focused investors.
ACWX invests in 1,751 non-U.S. companies, with a sector emphasis on financial services, technology, and industrials. Top holdings include Taiwan Semiconductor Manufacturing and Tencent Holdings. URTH covers 1,319 developed market stocks, heavily weighted towards U.S. technology giants like Nvidia, Apple, and Microsoft.
Investors seeking international diversification or broad market coverage can choose between URTH and ACWX. URTH tracks developed markets with a U.S. bias, while ACWX invests in large- and mid-cap companies outside the U.S. Consider their fees, returns, sector tilts, and risk metrics for the best fit in your portfolio.
ACWX offers a higher yield compared to URTH, making it appealing for income-focused investors. The two ETFs differ in their composition, costs, and performance, providing options for investors seeking international diversification or exposure to global equities outside the U.S.
Read more at Yahoo Finance: ACWX’s Higher Yield or URTH’s Stronger Growth?
