More on iShares MSCI Index Funds

iShares forwarded two Power point Presentations to us.

Their bullet points for ACWI:

The MSCI ACWI Index Fund captures broad global exposure in one trade

It is the first exchange-traded product with access to MSCI ACWI

The ACWI Index is widely used as a measure of global equity markets (including the US)

MSCI ACWI encompasses 85% of the world’s equity market capitalization

Bullet points for ACWX (MSCI ACWI Ex US):

US based investors can use MSCI ACWI Ex US to gain broad exposure without the inclusion of US equities

More cost effective versus building ACWX exposure via iShares ETFs

Example:

EFA — Developed International; 74% weight, cost = 0.34 bps
EEM — Emerging Markets; 19% weight, cost = 0.74 bps
EWC — Canada; 7% weight, cost = 0.52 bps
Total Cost to Replicate ACWX using individual iShares ETFs = 0.43
Cost of ACWX = 0.35

More unique stats: According to World Bank as of 09/14/2007
The U.S. generated 20% of world GDP
Emerging markets = 46%
Developed Markets = 32%
Canada = 2%

These ETFs are an excellent addition to your tool belt.