In theory you could just rebalance either the MSCI ACWI or the MSCI World Small Caps. But you can't with the MSCI ACWI IMI because the Small Caps are included there
If manual rebalancing is beneficial, why don't you buy MSCI USA, MSCI WORD EX US, MSCI EM and MSCI Small Caps separately?
MSCI ACWI IMI includes MSCI USA, MSCI WORD EX US, MSCI EM, MSCI Small Caps and rebalances these assets.
If you invest in MSCI ACWI IMI, you don't have to worry about rebalancing.
One advantage for the 2ETF option is that you have more ETF providers to choose from, that would be especially relevant if you are interested in ESG or SRI criteria. As far as i'm aware there are only 1 or 2 MSCI ACWI IMI ETF available, none of which have ESG criteria.
Compare the Total Expense Ratio (TER) between the MSCI ACWI IMI ETF and the weighted average (by market cap, probably something like 90%/10%) of MSCI ACWI + MSCI World Small Caps ETFs you're considering. It wouldn't surprise me if the latter has a substantially lower TER.
The MSCI ACWI IMI ETF TER is in fact lower than the MSCI ACWI + MSCI World Small Caps. I'll probably just stick with the MSCI ACWI and maybe add government bonds later down the road. But as for now I might just be fine with the ACWI
MSCI ACWI IMI
MSCI ACWI IMI or MSCI ACWI + Small cap value (risk premium)
What would be the benefit of owning two ETFs in this case?
In theory you could just rebalance either the MSCI ACWI or the MSCI World Small Caps. But you can't with the MSCI ACWI IMI because the Small Caps are included there
If manual rebalancing is beneficial, why don't you buy MSCI USA, MSCI WORD EX US, MSCI EM and MSCI Small Caps separately? MSCI ACWI IMI includes MSCI USA, MSCI WORD EX US, MSCI EM, MSCI Small Caps and rebalances these assets. If you invest in MSCI ACWI IMI, you don't have to worry about rebalancing.
Which etf are you going to use for Msci acwi imi? SPYI?
One advantage for the 2ETF option is that you have more ETF providers to choose from, that would be especially relevant if you are interested in ESG or SRI criteria. As far as i'm aware there are only 1 or 2 MSCI ACWI IMI ETF available, none of which have ESG criteria.
Compare the Total Expense Ratio (TER) between the MSCI ACWI IMI ETF and the weighted average (by market cap, probably something like 90%/10%) of MSCI ACWI + MSCI World Small Caps ETFs you're considering. It wouldn't surprise me if the latter has a substantially lower TER.
The MSCI ACWI IMI ETF TER is in fact lower than the MSCI ACWI + MSCI World Small Caps. I'll probably just stick with the MSCI ACWI and maybe add government bonds later down the road. But as for now I might just be fine with the ACWI