iShares Currency Hedged MSCI ACWI ex U.S. ETF

iShares Currency Hedged MSCI ACWI ex U.S. ETF (HAWX) owns large and mid-size company stocks from developed and emerging markets outside the U.S. It holds them through another iShares fund rather than buying the stocks itself. What sets it apart is the currency hedge: it uses currency contracts to remove most of the effect of foreign exchange moves, so its returns mostly follow foreign stock prices, not swings in the dollar. Its expense ratio is 0.35%.

• Over the year to Oct 27, 2026, HAWX returned +16.7%, 1st of 8 among similar funds.
• Its 5-year annualized return was +12.3% and its 10-year +11.4%.
• In the 2020 COVID crash it fell 30.1% and regained its old high 7.9 months after the low.
• Its worst full calendar year was 2018 (-9.8%); its best was 2025 (+26.2%).
• The deepest fall in its price history was 30.6% (Jan 17, 2020 to Mar 16, 2020), recovered by Nov 16, 2020.

As of Jul 31, 2026, the fund held 1 securities; the ten largest made up 101.38% of assets.

• Over the three months to Jul 31, 2026, investors added a net $2.7M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +4.53%, +2.63%, -2.43%.

HAWX tracks the MSCI ACWI ex USA 100% Hedged to USD Index. As of July 31, 2025, the index covered large- and mid-cap stocks in 46 countries or regions outside the U.S., with a big share in consumer goods and services and in financial companies. BlackRock's adviser, BFA, runs it as an index fund. It does not try to beat the index or move to cash when markets look shaky.

HAWX is a fund of funds, which means it owns another fund rather than individual stocks. As of July 31, 2026, about 101% of its assets sat in the unhedged iShares MSCI ACWI ex U.S. ETF, along with 219 currency derivative positions. That fund uses representative sampling: it holds a sample of stocks chosen to match the index's size, sector and yield profile, not every stock in the index.

The hedge uses currency forward contracts, which are agreements to swap currencies at a set rate on a future date. Some are non-deliverable forwards, which settle in cash in U.S. dollars. MSCI resets the hedge once a month, so between resets the fund can be slightly over-hedged if stocks fall or under-hedged if they rise. The hedge helps when foreign currencies weaken against the dollar and hurts when they strengthen. It does not reduce stock market risk.

• HAWX charges 0.35% a year, versus an average of 0.86% for the similar funds below (1st of 8, cheapest first).
• Of that, 0.38% is the management fee; the rest covers other fund expenses.
• The fee includes a 0.35% waiver from the adviser, which may end.
• Using the prospectus's standard example, $10,000 invested would cost about $36 in the first year and $685 over 10 years (assuming a 5% annual return).

It adds broad exposure to stocks outside the U.S. while removing most currency swings, which can complement a portfolio built mostly on U.S. stocks.

HAWX can spread a portfolio beyond U.S. companies, but it is still a stock fund and can fall hard in sell-offs. It launched in 2015, so it has no record from 2008. Its deepest drop, 30.6%, ran from January 17 to March 16, 2020, during the COVID crash, and it took about eight months to recover. In the 2022 bear market it fell 16.8% and had recovered by June 6, 2023. Its worst calendar year was 2018, at -9.18%. Someone drawing income in years like those may have to sell shares at low prices. The trailing yield was 2.52% as of October 27, 2026, paid twice a year. Under the SEC's standard example, costs on $10,000 come to $36 after one year and $685 after ten. Past results don't predict future returns, and a plan should look at the whole portfolio, not one fund.

Matched by other buffer (defined-outcome) funds, largest first.