Technology Sector Powers Strong Returns for iShares MSCI World ETF

The iShares MSCI World ETF (URTH) continues to advance, reaching new 52-week highs. This performance is being fueled significantly by U.S. technology stocks, which now account for a substantial portion of the fund's gains. Key characteristics include robust investor inflows, a deliberate focus on developed markets, and a noticeable concentration in a handful of mega-capitalization companies.

• Fund Assets: $6.97 billion
• Net Inflows (Past Year): $1.52 billion
• Holdings: 1,320 stocks from 23 developed countries
• Market Focus: 69.82% U.S. allocation, significant technology weighting
• 2025 Return: 21.28% (slightly above benchmark)

URTH delivered a total return of 21.28% for 2025, outperforming its benchmark by 19 basis points. This minor deviation indicates tight tracking of the underlying index. The fund's three-year standard deviation is 11.59%, with a beta of 0.95.

Historical Performance

• Year-to-Date 2026: 2.36%
• 1 Month: 2.77%
• 3 Months: 4.11%
• 1 Year: 23.08% (Benchmark: 21.09%)
• 3 Years (Annualized): 21.29% (Benchmark: 21.17%)
• 5 Years (Annualized): 12.30% (Benchmark: 12.15%)
• 10 Years (Annualized): 12.39% (Benchmark: 12.17%)

On valuation, the ETF reflects the higher multiples prevalent in developed markets:

• Price/Earnings (P/E): 26.74
• Price/Book (P/B): 4.00
• Dividend Yield (Trailing 12M): 1.49%, distributed semi-annually

A Developed Markets Strategy

This ETF tracks the MSCI World Index (Net), providing exposure exclusively to developed economies. Its methodology captures approximately 85% of the free-float adjusted market capitalization in each included country, deliberately excluding emerging markets.

The regional allocation reveals a clear U.S. dominance, a direct result of the index's market-cap weighting which gives larger companies, particularly U.S. tech giants, greater influence:

• United States: 69.82%
• Japan: 5.53%
• United Kingdom: 3.83%
• Canada: 3.42%

Top Holdings and Sector Concentration

The ten largest positions collectively represent 26.86% of the portfolio, which is notably lower than the category average concentration of 45.83%. Technology and U.S. mega-caps lead the list:

• NVIDIA: 5.34%
• Apple: 4.57%
• Microsoft: 4.01%
• Amazon: 2.81%
• Alphabet (Class A): 2.25%
• Alphabet (Class C): 1.89%
• Broadcom: 1.77%
• Meta Platforms: 1.66%
• Tesla: 1.46%
• JPMorgan Chase: 1.08%

NVIDIA remains the largest single holding, mirroring the strong AI-driven semiconductor rally of 2025. Combined, Alphabet's share classes represent a 4.14% effective weighting, ranking it third in the portfolio.

Sector Allocation

The sector breakdown underscores the fund's technology tilt, which was a primary driver of its 2025 outperformance:

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

• Information Technology: 26.69%
• Financials: 16.79%
• Industrials: 11.41%
• Consumer Discretionary: 10.14%
• Health Care: 9.75%
• Communication Services: 8.70%
• Consumer Staples: 5.24%
• Materials: 3.35%
• Energy: 3.34%
• Utilities: 2.52%
• Real Estate: 1.77%

Liquidity and Investor Demand

Investor interest in URTH has been pronounced, supporting solid tradability with narrow spreads.

• Inflows (1 Month): $261.44 million
• Inflows (12 Months): $1.52 billion
• 30-Day Average Volume: 470,595 shares daily
• Bid/Ask Spread: 0.03%

Competitive Landscape: MSCI World vs. Broader Alternatives

URTH competes directly with global equity ETFs that include emerging markets. The core distinction lies in index selection:

• URTH: Tracks MSCI World (developed markets only)
• ACWI (iShares MSCI ACWI ETF): Tracks MSCI ACWI (includes ~10–11% emerging markets)
• VT (Vanguard Total World Stock ETF): Tracks FTSE Global All Cap (includes small caps and broader coverage)

Direct Comparison:

• Fund Assets: URTH $6.97B, ACWI $25.87B, VT $61.40B
• Expense Ratio: URTH 0.24%, ACWI 0.32%, VT 0.06%
• Number of Holdings: URTH 1,320, ACWI 2,277, VT 9,957
• 1-Year Return: URTH 23.08%, ACWI 22.43%, VT ~22.37%
• Distribution: URTH semi-annual, ACWI semi-annual, VT quarterly

URTH positions itself cost-wise between the very low-cost VT and the broader ACWI, offering a clear separation from emerging markets exposure.

Index Mechanics and Forward Considerations

MSCI reviews the underlying index quarterly, with more comprehensive rebalancing occurring in May and November. These events can alter individual stock weightings, particularly for technology names that have seen significant prior appreciation.

Key factors influencing URTH's future trajectory include:

• A high U.S. allocation (69.82%), creating a strong correlation to U.S. equity markets.
• A 26.69% technology weighting, increasing sensitivity to AI and semiconductor cycles.
• Valuation levels, with a P/E of 26.74 in the context of developed markets.
• A 30-day SEC yield of 1.24%, providing a moderate income component.

From a technical perspective, URTH trades near its 52-week high of $189.95. The current price sits above the 20-day moving average of $186.47 and the 60-day average of $183.66. A 10-day RSI reading of 68 suggests the ETF is approaching overbought territory.

Fund Profile Summary

URTH serves as a broadly diversified developed markets vehicle, holding 1,320 large- and mid-cap stocks from 23 countries. Its 2025 return of 21.28% highlights the impact of its technology-heavy structure. With annual inflows of $1.52 billion, a Morningstar 5-star rating, and an expense ratio of 0.24%, this U.S.-listed ETF maintains its role as a core holding for direct MSCI World exposure. Alternatives like VT and ACWI offer broader, sometimes cheaper, global coverage that includes emerging markets.