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.
Daniel Sotiroff does not own shares in any of the securities mentioned above. Find out about Morningstar's editorial policies.