MSCI All Country World Index (ACWI)

MSCI All Country World Index (ACWI)

Key takeaways

• The MSCI ACWI is a global equity index that tracks nearly 3,000 stocks across developed and emerging markets (47 countries).
• It is widely used as a benchmark for global equity funds and as a guide to geographic diversification.
• Institutional and individual investors access the index through funds that replicate its performance, primarily ETFs.

What is the MSCI ACWI?

The MSCI All Country World Index (ACWI), maintained by MSCI, measures broad global equity-market performance by combining developed- and emerging-market stocks. It is commonly used as a benchmark by fund managers and as the basis for investment products that seek broad global equity exposure.

Who uses it and why

• Institutional investors (mutual funds, pension funds) use the ACWI to benchmark performance and guide asset allocation.
• Individual investors use ACWI-tracking funds to gain diversified international exposure without selecting many individual stocks.
• The index helps assess risk-adjusted returns and geographic concentration in portfolios.

Composition and weightings

Top country allocations (approximate weights):
* United States: 62.6%
* Japan: 5.4%
* China: 3.6%
* United Kingdom: 3.6%
* France: 2.9%

Sector weightings (approximate):
* Information Technology: 22.9%
* Financials: 15.9%
* Healthcare: 11.2%
* Consumer Discretionary: 11.1%
* Industrials: 10.7%
* Communication Services: 7.3%
* Consumer Staples: 6.8%
* Energy: 4.5%
* Materials: 4.5%
* Utilities: 2.6%
* Real Estate: 2.4%

Top 10 holdings (by index weight, approximate):
1. Apple — 4.47%
2. Microsoft — 3.95%
3. Amazon — 2.10%
4. Nvidia — 1.82%
5. Alphabet A — 1.23%
6. Meta Platforms A — 1.17%
7. Alphabet C — 1.09%
8. Tesla — 1.06%
9. Broadcom — 0.74%
10. JPMorgan Chase — 0.73%

The top 10 holdings account for roughly 18.4% of the index.

How to invest in the MSCI ACWI

You cannot buy an index directly. To gain exposure, buy funds that track the ACWI, most commonly ETFs. Example:
* iShares MSCI ACWI ETF (tracks MSCI ACWI)
* Holds thousands of index constituents
* Expense ratio around 0.32%
* Designed to closely replicate the index’s sector and country weightings

Purchase ACWI-tracking ETFs through a brokerage like you would any stock or ETF.

Alternatives and considerations

• MSCI ACWI All Cap Index: broader coverage with many more small- and mid-cap stocks, useful if you want exposure across market-cap ranges.
• Overlap risk: ACWI includes many U.S. stocks; investors already heavily weighted to U.S. equities should check for unintended concentration.
• Always review expense ratios, tracking error, and fund holdings when choosing a fund to replicate the index.

FAQs

Q: Can I invest directly in the MSCI ACWI?
A: No—indices are benchmarks. Invest via funds (ETFs/mutual funds) that track the index.

Q: How does MSCI ACWI differ from the MSCI World Index?
A: MSCI World covers only developed markets. MSCI ACWI includes both developed and emerging markets.

Q: Does the MSCI ACWI include China?
A: Yes. The ACWI includes Chinese equities as part of its emerging-market coverage.

Bottom line

The MSCI ACWI provides broad, diversified exposure to both developed and emerging equity markets, making it a convenient benchmark and the basis for global equity funds. Investors seeking one-stop global diversification often use ACWI-tracking ETFs, while being mindful of U.S. concentration and overlap with existing holdings.