Differences arise between mutual funds and ETFs. Mutual funds are priced based on the fund’s NAV at the end of the trading day, which means that is the only time a mutual fund can be traded. An ETF, however, can be traded throughout the day with the price of an ETF reflecting the real-time pricing of the securities held within the portfolio. Mutual funds tend to be more actively managed products (passively managed mutual funds do exist) while ETFs tend to be passive products that track an underlying index (actively managed ETFs do exist). Holdings for mutual funds are typically only disclosed on a quarterly basis whereas holdings for an ETF are typically published daily.
iShares MSCI ACWI ETF
• Investment Objective: The iShares MSCI ACWI ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization developed and emerging market equities.
• Strategy: The Fund seeks to track the investment results of the MSCI ACWI (the “Underlying Index”), which is a free float-adjusted market capitalization index designed to measure the combined equity market performance of developed and emerging markets countries.
• Benchmark Index: MSCI All Country World Index
• Principal Risks: Asset class, authorized participant concentration, concentration, currency, cyber security, equity securities, financials sector, geographic, index-related, information technology sector, issuer, large-capitalization companies, management, market, market trading, national closed market trading, non-US securities, operational, passive investment, reliance on trading partners, risk of investing in developed countries, risk of investing in Russia, risk of investing in the US, securities lending risk, security risk, structural risk, tracking error risk, valuation risk
• Turnover Rate for Last Fiscal Year (from Prospectus dated November 29, 2018): 4%
• Front-End Sales Charge: None
• Back-End Sales Charge: None
• Broker Commission and Account Charges: If you purchase shares of the Fund through a broker-dealer or other financial intermediary (such as a bank), BFA or other related companies may pay the intermediary for marketing activities and presentations, educational training programs, conferences, the development of technology platforms and reporting systems or other services related to the sale or promotion of the Fund. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary’s website for more information.
• Liquidity: The Fund is an ETF. Individual shares of the Fund are listed on a national securities exchange. Most investors will buy and sell shares of the Fund through a broker-dealer. The price of Fund shares is based on market price, and because ETF shares trade at market prices rather than at NAV, shares may trade at a price greater than NAV (a premium) or less than NAV (a discount). The Fund will only issue or redeem shares that have been aggregated into blocks of 200,000 shares or multiples thereof (“Creation Units”) to Authorized Participants who have entered into agreements with the Fund’s distributor. The Fund generally will issue or redeem Creation Units in return for a designated portfolio of securities (and an amount of cash) that the Fund specifies each day.
• Taxation: The Fund intends to make distributions that may be taxable to you as ordinary income or capital gains, unless you are investing through a tax-deferred arrangement such as a 401(k) plan or an IRA, in which case, your distributions generally will be taxed when withdrawn.
• The iShares MSCI ACWI ETF is distributed by BlackRock Investments, LLC.