ACWX has a higher expense ratio but offers a meaningfully higher dividend yield compared to URTH.
URTH’s portfolio is dominated by U.S. tech giants, while ACWX focuses on non-U.S. equities with a tilt toward financial services.
ACWX experienced a deeper five-year drawdown and lower long-term growth than URTH, despite outperforming over the past year.
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The iShares MSCI World ETF (NYSEMKT:URTH) and the iShares MSCI ACWI ex US ETF (NASDAQ:ACWX) differ in both cost and composition: ACWX is more expensive but yields more, and it excludes U.S. stocks while URTH skews heavily toward American tech names.
Both funds target global equity exposure, but their approaches diverge: URTH tracks developed markets with a strong U.S. bias, while ACWX invests solely in large- and mid-cap companies outside the United States. This comparison unpacks how their fees, returns, sector tilts, and risk metrics stack up for investors seeking international diversification or broad market coverage.
Metric
| URTH | ACWX
|
|---|
Issuer | IShares | IShares |
Expense ratio | 0.24% | 0.32% |
1-yr return (as of 1/9/2026) | 23.08% | 35.9% |
Dividend yield | 1.5% | 2.83% |
AUM | $6.74 billion | $7.87 billion |
The 1-yr return represents total return over the trailing 12 months.
ACWX charges a higher fee than URTH, but in exchange, it delivers a notably higher dividend yield—potentially appealing for income-focused investors willing to accept the additional cost.
Metric | URTH | ACWX |
|---|
Max drawdown (5 y) | -26.06% | -30.06% |
Growth of $1,000 over 5 years | $1,644 | $1,251 |
ACWX invests in a broad swath of non-U.S. stocks, holding 1,751 companies as of its most recent report, with a sector emphasis on financial services (25%), technology (15%), and industrials (15%). Top positions include Taiwan Semiconductor Manufacturing, Tencent Holdings, and ASML, and the fund has a track record of nearly 18 years. Its portfolio may appeal to those seeking to avoid U.S. equity dominance and gain more exposure to international markets.
URTH, by contrast, covers 1,319 developed market stocks but is heavily weighted toward U.S. technology—Nvidia, Apple, and Microsoft are its largest holdings. This results in a different sector allocation, with technology accounting for 26% and financial services at 17%. Investors looking for a more U.S.-centric, tech-heavy global blend may find URTH more aligned with their goals.
For more guidance on ETF investing, check out the full guide at this link.
If you’ve been investing for any period of time, you’ve likely encountered the advice to diversify your portfolio by investing in international stocks or exchange-traded funds (ETFs). Both the iShares MSCI World ETF and the iShares MSCI ACWI ex US ETF give you that ability, but with very different approaches.
URTH tracks an index composed of developed market equities around the world, including in the U.S. So while it does give investors exposure to the entire developed world with one investment, its holdings are still weighted heavily toward tech companies headquartered in the U.S. If you don’t already have exposure to hot stocks like Nvidia, Apple, and Microsoft through individual stocks or other funds in your portfolio, this could be a good option, though the 0.24% expense ratio is a fee you wouldn’t have to pay if you just owned these stocks individually.
On the other hand, ACWX gives investors exposure to international developed and emerging market companies, excluding the U.S. There are two main differences to note here: One is that this fund does not hold U.S.-based stocks. The other is that it also invests in emerging markets, unlike URTH. ACWX has outpaced URTH over the last year with a nearly 36% gain, likely due to its top holdings in Taiwan Semiconductor Manufacturing, which is up 45% over the last year, and Tencent, which is up 56%.
One thing that may influence your choice between the two ETFs is the ever-changing tariff landscape. Both ETFs hold companies that are likely to face tariff headwinds over the next few years. However, URTH’s inclusion of U.S. companies may protect it from significant downside to that effect.
ETF: Exchange-traded fund that holds a basket of securities and trades on an exchange like a stock.
Expense ratio: Annual fund operating costs expressed as a percentage of the fund’s average assets.
Dividend yield: Annual dividends paid by a fund or stock divided by its current market price.
Beta: Measure of an investment’s volatility compared with a benchmark index, often the S&P 500.
AUM: Assets under management; the total market value of all assets a fund manages.
Max drawdown: Largest peak-to-trough decline in value over a specific period, showing worst historical loss.
Total return: Investment performance including price changes plus all dividends and distributions, assuming reinvestment.
Developed markets: Economies with advanced infrastructure, stable political systems, and mature financial markets, like the U.S. or Japan.
Emerging markets: Developing economies with growing industrialization and financial markets, often offering higher growth and higher risk.
Sector allocation: How a fund’s assets are distributed across different industries, such as technology or financial services.
Large-cap: Companies with relatively large market capitalizations, typically tens or hundreds of billions of dollars.
Mid-cap: Companies with medium-sized market capitalizations, generally smaller than large-caps but larger than small-caps.
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Sarah Sidlow has positions in Apple, Microsoft, and Nvidia. The Motley Fool has positions in and recommends ASML, Apple, Microsoft, Nvidia, Taiwan Semiconductor Manufacturing, and Tencent. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Diversify With Global ETFS: ACWX’s Higher Yield or URTH’s Stronger Growth? was originally published by The Motley Fool
