iShares MSCI ACWI ETF (ACWI US) – Portfolio Construction Methodology

The underlying MSCI ACWI Index delivers free float-adjusted, market-cap-weighted exposure to large and mid-cap equities across developed and emerging markets, targeting ~85% of each country’s free-float market cap. Eligible listings must pass liquidity screens using ATVR and trading-frequency thresholds (DM: 3-month ATVR ≥20% with 3-month trading frequency ≥90% and 12-month ATVR ≥20%; EM: 15%/80%/15%). Constituents must meet minimum free-float size tests (at least 50% of the Standard segment cutoff) with free float rounded to the nearest 5% (>15%). Foreign ownership limits are reflected via a Foreign Inclusion Factor; foreign room <25% halves inclusion, <15% is ineligible. Selection applies buffer rules to limit turnover, and securities with very low free float (<15%) face stricter size tests. The index is reviewed quarterly (February, May, August, November), with event-driven changes and fast entry for significant IPOs. To explore ACWI in more depth, visit our ETF analytics platform for institutional-grade insights — including performance and risk metrics, correlations, sensitivities, and factor exposure: https://www.etfstrategy.com/etf/ACWI_US