ITDD vs. ACWI

Last updated Jun 24, 2026

ITDD (Ishares Lifepath Target Date 2040 ETF) and ACWI (iShares MSCI ACWI ETF) are both exchange-traded funds - ITDD is a Target Retirement Date fund actively managed by iShares, while ACWI is a Global Equities fund tracking the MSCI All Country World Index. ITDD is actively managed, while ACWI is passively managed. Over the past year, ITDD returned 20.04% vs 25.60% for ACWI. With a 0.97 correlation, they move nearly in lockstep. ITDD charges 0.11%/yr vs 0.32%/yr for ACWI.

Performance

ITDD vs. ACWI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Ishares Lifepath Target Date 2040 ETF (ITDD) and iShares MSCI ACWI ETF (ACWI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ITDD achieves a 8.11% return, which is significantly lower than ACWI's 9.86% return.

ITDD

• 1D: -1.22%
• 1M: 0.09%
• YTD: 8.11%
• 6M: 7.50%
• 1Y: 20.04%
• 3Y*: —
• 5Y*: —
• 10Y*: —

ACWI

• 1D: -2.00%
• 1M: -0.35%
• YTD: 9.86%
• 6M: 9.11%
• 1Y: 25.60%
• 3Y*: 20.00%
• 5Y*: 10.74%
• 10Y*: 13.09%

*Multi-year figures are annualized to reflect compound growth (CAGR)

ITDD vs. ACWI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
ITDD Ishares Lifepath Target Date 2040 ETF	8.11%	17.66%	13.08%	12.87%
ACWI iShares MSCI ACWI ETF	9.86%	22.41%	17.45%	11.28%

Correlation

The correlation between ITDD and ACWI is 0.98 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.98
Correlation (All Time) Calculated using the full available price history since Oct 19, 2023	0.97

The correlation between ITDD and ACWI has been stable across timeframes, ranging from 0.97 to 0.98 - a consistent structural relationship.

Return for Risk

ITDD vs. ACWI — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

ITDD

ITDD Risk / Return Rank: 62
ITDD Sharpe Ratio Rank: 63
ITDD Sortino Ratio Rank: 62
ITDD Omega Ratio Rank: 63
ITDD Calmar Ratio Rank: 57
ITDD Martin Ratio Rank: 66

ACWI

ACWI Risk / Return Rank: 58
ACWI Sharpe Ratio Rank: 58
ACWI Sortino Ratio Rank: 56
ACWI Omega Ratio Rank: 58
ACWI Calmar Ratio Rank: 55
ACWI Martin Ratio Rank: 65

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

ITDD vs. ACWI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Ishares Lifepath Target Date 2040 ETF (ITDD) and iShares MSCI ACWI ETF (ACWI). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	ITDD	ACWI	Difference
Sharpe ratio: Return per unit of total volatility	1.96	1.89	+0.07
Sortino ratio: Return per unit of downside risk	2.74	2.60	+0.14
Omega ratio: Gain probability vs. loss probability	1.36	1.34	+0.02
Calmar ratio: Return relative to maximum drawdown	2.66	2.64	+0.02
Martin ratio: Return relative to average drawdown	11.44	11.51	-0.07

ITDD vs. ACWI - Sharpe Ratio Comparison

The current ITDD Sharpe Ratio is 1.96, which is comparable to the ACWI Sharpe Ratio of 1.89. The chart below compares the historical Sharpe Ratios of ITDD and ACWI, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

ITDD vs. ACWI - Drawdown Comparison

The maximum ITDD drawdown since its inception was -12.46%, smaller than the maximum ACWI drawdown of -56.00%. Use the drawdown chart below to compare losses from any high point for ITDD and ACWI.

Drawdown Indicators

	ITDD	ACWI	Difference
Max Drawdown Largest peak-to-trough decline	-12.46%	-56.00%	+43.54%
Max Drawdown (1Y) Largest decline over 1 year	-7.56%	-9.73%	+2.17%
Max Drawdown (3Y) Largest decline over 3 years	—	-16.55%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-26.42%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-33.53%	—
Current Drawdown Current decline from peak	-1.59%	-2.83%	+1.24%
Average Drawdown Average peak-to-trough decline	-1.25%	-8.59%	+7.34%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.76%	2.23%	-0.47%

Volatility

ITDD vs. ACWI - Volatility Comparison

The current volatility for Ishares Lifepath Target Date 2040 ETF (ITDD) is 4.07%, while iShares MSCI ACWI ETF (ACWI) has a volatility of 5.57%. This indicates that ITDD experiences smaller price fluctuations and is considered to be less risky than ACWI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ITDD	ACWI	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.07%	5.57%	-1.50%
Volatility (6M) Calculated over the trailing 6-month period	8.62%	11.38%	-2.76%
Volatility (1Y) Calculated over the trailing 1-year period	10.31%	13.64%	-3.33%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.56%	16.20%	-4.64%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	11.56%	17.08%	-5.52%

ITDD vs. ACWI - Expense Ratio Comparison

ITDD has a 0.11% expense ratio, which is lower than ACWI's 0.32% expense ratio.

Dividends

ITDD vs. ACWI - Dividend Comparison

ITDD's dividend yield for the trailing twelve months is around 1.69%, more than ACWI's 1.45% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ACWI iShares MSCI ACWI ETF	1.45%	1.55%	1.70%	1.88%	1.79%	1.71%	1.43%	2.33%	2.18%	1.94%	2.19%	2.56%
ITDD Ishares Lifepath Target Date 2040 ETF	1.69%	1.82%	1.56%	0.89%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both ITDD and ACWI in my portfolio?

With a correlation of 0.98, ITDD and ACWI move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, ITDD or ACWI?

ACWI has higher volatility (5.57%) compared to ITDD (4.07%). In terms of maximum drawdown, ITDD dropped -12.46% vs ACWI's -56.00%.

Which ETF is better, ITDD or ACWI?

On 1-year performance, ACWI leads with 25.60% vs 20.04% for ITDD. On fees, ITDD is cheaper at 0.11% per year. On volatility, ITDD has been the lower-risk option at 4.07%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ITDD or ACWI?

Over the 1-year period, ACWI has performed better with a 25.60% return vs 20.04%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ITDD or ACWI?

ITDD is cheaper with a 0.11% expense ratio, compared with 0.32% for ACWI.

Which ETF pays a higher dividend yield, ITDD or ACWI?

ITDD has the higher dividend yield at 1.69%, compared with 1.45% for ACWI.

What is the main difference between ITDD and ACWI?

ITDD is categorized as Target Retirement Date, while ACWI is Global Equities. Their fees differ too: 0.11% for ITDD and 0.32% for ACWI.

Which has better risk-adjusted returns?

ITDD currently has the higher Sharpe Ratio (1.96 vs 1.89), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.