iShares MSCI ACWI ex U.S. ETF Records Ten-Week Rally, Narrows S&P 500 Gap
ACWX ETF has logged a record ten-week winning streak, narrowing its 280% underperformance gap versus the S&P 500 since 2009. Bank of America’s strategist forecasts international equities—now 38% of the $97 trillion global market—will outperform U.S. stocks in the second half of the 2020s.
1. Historic Performance Breakthrough
The iShares MSCI ACWI ex U.S. ETF has achieved its first-ever ten-week consecutive gain, marking a historic performance milestone. This rally has helped ACWX close a 280% cumulative underperformance gap against the S&P 500 ETF Trust from 2009 through late 2024.
2. Shift in Global Market Share
International equities have rebounded to 38% of the $97 trillion global equity market, up from a December 2024 trough of 33%. Fiscal expansion, populist policies and rising inflationary pressures are driving renewed investor interest in manufacturing- and resource-heavy regions.
3. Strategist’s Global Outlook
Bank of America’s Chief Investment Strategist projects that overseas stocks, represented by ACWX, will outperform U.S. equities in the latter half of the 2020s. The forecast rests on anticipated fiscal stimulus, geopolitical fragmentation and an end to global deflation.
4. AI and Sector Implications
AI-driven disruption may exert more pressure on U.S. service-sector margins, given the S&P 500’s tech concentration, while export-oriented emerging markets could benefit from manufacturing and natural resource demand, underpinning ACWX’s structural advantage.