Some market observers believe expected returns on U.S. stocks are lower from a historical perspective due to high valuations. Alternatively, BlackRock sees more opportunities in non-U.S. equities, but investors will be exposed to greater risks if they seek out these areas of potentially higher returns.
“Although the U.S. stock market remains healthy, with a price-to-earnings ratio of around 17, prices are 15 percent higher than the global average, according to a year-end research report by UBS Global Wealth Management. Euro-zone and emerging-market stocks have lower valuations, but both regions are exposed to China’s slowdown,” reports Bloomberg.
ACWX charges 0.31% per year, or $31 on a $10,000 investment.
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