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MSCI ACWI IMI: A Comprehensive Global ETF
The MSCI ACWI IMI is an index fund offering broad global equity market exposure, including small-cap stocks. It's compared to the MSCI World, and ETF options are discussed.
German
Germany
Germany InvestmentEtfDiversificationGlobal MarketIndex Fund
MsciSpdrEnvestorFrankfurter Allgemeine SonntagszeitungApple
Ali Masarwah
- What is the MSCI ACWI IMI and what makes it unique?
- The MSCI ACWI IMI is a market capitalization-weighted index that aims to represent 99% of the global investable equity market. It includes small-cap stocks, unlike its predecessors, offering broader diversification.
- How does the MSCI ACWI IMI differ from the MSCI World?
- The MSCI ACWI IMI index includes nearly 9000 companies, covering a much wider range of stocks than the MSCI World, which only includes companies from developed markets. It is considered a more comprehensive representation of the global equity market.
- How has the performance of the MSCI ACWI IMI compared to the MSCI World?
- While the MSCI ACWI IMI offers better diversification by including small-cap stocks, its performance has been slightly below that of the MSCI World recently. However, long-term differences are minimal.
- What are the ETF options available for investors seeking exposure to the MSCI ACWI IMI?
- The choice of ETFs tracking the MSCI ACWI IMI is limited for private investors. SPDR offers two such funds with reasonable fees, but other providers are scarce.
- What is the proportion of small-cap stocks in the MSCI ACWI IMI, and what is the significance of this?
- Small-cap stocks account for about 5% of the MSCI ACWI IMI. This is considered an acceptable level for those seeking broad market exposure with minimal effort, according to Ali Masarwah of Envestor.