Global stock funds hold a certain appeal for investors who want to reduce their portfolio’s complexity while staying diversified across the world. Combining a broad portfolio with a minimum-volatility strategy should help reduce risk and smooth out returns relative to a cap-weighted benchmark. Throw in a low expense ratio and the result is a compelling, all-in-one fund for long-term investors.
IShares Edge MSCI Minimum Volatility Global ETF (ACWV) is a well-diversified global stock portfolio that takes a holistic approach toward reducing volatility for a low fee. It should offer a smoother ride and better risk/reward profile than most of its peers over the long term, supporting its Morningstar Analyst Rating of Silver.
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Daniel Sotiroff does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.