Acorns International Select Mutual Fund (ACFEX)

Overview

The fund primarily focuses on investment opportunities in developed markets, allocating at least 65% of its net assets to foreign companies situated in these areas. It exhibits flexibility in its investment strategy by potentially allocating up to 35% of its total assets to companies in emerging markets, demonstrating a balanced approach to risk and growth opportunities across its portfolio. Investment diversification is a fundamental principle for the fund, which is evidenced by its commitment to invest in a minimum of three countries outside the United States, though it retains the option to invest up to 25% of its total assets in securities of U.S. issuers. Targeting small- and mid-sized companies, the fund seeks to capitalize on growth opportunities by investing a majority of its net assets in the common stock of companies that fall within the market capitalization range of the MSCI ACWI ex USA Growth Index (Net), its primary benchmark. This strategy underscores the fund's focus on achieving growth through diversification, international exposure, and a careful balance between developed and emerging market investments.

Products and Services

• Investment in Developed Markets

The fund dedicates at least 65% of its net assets to investments in companies located in developed markets, aiming to harness stability and growth from more established economies. This strategic allocation underpins the fund's approach to seeking solid investment returns while managing risk through exposure to economies with robust regulatory environments, mature financial markets, and stable political landscapes.

• Emerging Markets Opportunities

Up to 35% of the fund's total assets may be invested in emerging markets, reflecting a strategic approach to diversification and potential high-growth investment opportunities. This segment of the investment strategy allows the fund to explore markets with high growth potential, albeit with a higher risk profile compared to developed markets. It aligns the fund's growth objectives with the dynamic nature of emerging economies.

• U.S. Securities Investment

The fund holds the flexibility to invest up to 25% of its total assets in securities of U.S. issuers. This component of the fund’s strategy provides it with the versatility to tap into the U.S. economy's innovative and growth-oriented sectors, thereby possibly enhancing the fund’s overall risk-adjusted returns. It integrates the relative safety and potential growth of the U.S. market into its primarily international focus.

• Focus on Small and Mid-Sized Companies

Targeting small- and mid-sized companies, the fund aims to benefit from the higher growth potential associated with these entities. Investment in these companies is guided by their market capitalizations falling within the range of the MSCI ACWI ex USA Growth Index (Net), aligning the fund with its benchmarks and strategic growth objectives. This approach allows the fund to potentially capitalize on the agility and innovation often found in smaller companies, which might be absent in larger corporations.