A Global ETF with a Distinctly American Tech Flavor

For investors seeking diversified exposure to developed markets, the iShares MSCI World ETF (URTH) offers a compelling, yet concentrated, proposition. While its portfolio holds over 1,300 individual securities, its performance is heavily influenced by U.S. equities, particularly the dominant technology sector. This creates a vehicle that is global in name but carries a significant overweight to American tech giants.

The fund has demonstrated robust performance in 2025, closely tracking its benchmark index. Recent data highlights its current standing:

• Current Trading Price: Approximately $185–186, hovering near its 52-week high of around $187.95.
• One-Month Gain: Between +2.0% and +4.0%, buoyed by a favorable year-end rally and solid corporate earnings.
• Year-to-Date Performance (2025): Up roughly +20%. This outpaces returns from money markets and bonds but trails purely U.S.-focused indices like the S&P 500, partly due to weaker performance in European holdings.
• Daily Trading Volume: An average of 400,000–500,000 shares, providing ample liquidity for both retail and institutional investors.
• Tracking Error: Minimal, as the fund employs a physical replication strategy to mirror the index.
• Dividend Yield: Currently in the range of 1.27–1.49%, with payouts showing a notable year-over-year increase.

Portfolio Composition and Top Holdings

With assets under management around $6.6 billion, URTH’s broad diversification belies a clear concentration in mega-cap companies. Its top ten holdings account for roughly 27–28% of the portfolio, underscoring this focus.

Leading Positions (as of December 2025):

Should investors sell immediately? Or is it worth buying MSCI World ETF?

1. NVIDIA (~5.1–5.4%) – The fund's largest holding, driven by expansive growth in AI infrastructure.
2. Apple (~5.0%) – A growth-oriented yet defensive position, known for stable cash flows and shareholder returns.
3. Microsoft (~4.1%) – A core investment in enterprise software and cloud computing.
4. Alphabet (Class A & C shares, combined ~4.0%) – Maintains leadership in online advertising and search.
5. Amazon (~2.7%) – A heavyweight in both e-commerce and cloud services via AWS.
6. Broadcom (~1.8–2.1%) – A key semiconductor provider for custom chips and networking solutions related to AI.
7. Meta Platforms (~1.7%) – Benefiting from efficiency initiatives and a recovery in advertising budgets.
8. Tesla (~1.5–1.6%) – A more volatile position focused on electric vehicles and autonomous driving technology.
9. JPMorgan Chase (~1.1%) – The largest financial holding, offering some balance to the tech-heavy slant.
10. Eli Lilly (~1.0%) – Represents the strong thematic trend in healthcare and GLP-1 medications.

Sector and Geographic Exposure

The sector allocation is unmistakably led by technology, with Information Technology comprising approximately 29–30% of the fund. Financials follow at about 15–16%.

Geographically, the United States commands a dominant share exceeding 70%. Other developed markets in Japan, the United Kingdom, and Western Europe make up the remainder. Consequently, the ETF's performance is closely tied to the fortunes of U.S. technology stocks and the broader American economy, supplemented by exposure to other industrialized nations.

Competitive Landscape and Cost Considerations

URTH competes directly with other broadly diversified global ETFs, including lower-cost alternatives. Key competitors include other global index funds from providers like Vanguard or iShares' own all-world products (e.g., ACWI), which cover similar regions but often feature slightly lower ongoing expense ratios.

This positions URTH as a precise tool for targeting developed markets with a clear U.S. tech bias, albeit at a cost that is marginally higher than some competing products. Its ongoing appeal will likely depend on three factors: the relative performance of U.S. technology versus European and Japanese equities, the continued stability of its tracking quality, and its cost competitiveness within the global ETF universe.