ACWI: Global Diversification Does Not Eliminate U.S. Valuation Risk

ACWI, an index tracking global developed markets, has shown strong performance, but it remains exposed to U.S. valuation risks.

The index has a high correlation with the S&P 500, which means it is still vulnerable to U.S. market fluctuations.

Investors looking for global diversification may need to consider other markets or asset classes to reduce their exposure to U.S. risks.