The Dominant Tech Influence Within a Major Developed Markets ETF

The iShares MSCI World ETF (ticker: URTH) concluded 2025 with an impressive annual gain exceeding 22%. This performance was largely fueled by U.S. technology behemoths, which now command a decisive presence in the fund's holdings. While the ETF formally provides diversified exposure to equities across developed markets, its actual composition increasingly resembles a concentrated bet on the leadership of American technology stocks.

URTH has delivered robust to strong returns across multiple timeframes in recent years. The year-to-date return for 2025 stood at 22.30%. Other key performance metrics include a one-year return of 17.46%, and annualized gains of 23.98% over three years, 14.59% over five years, and 12.66% over a decade. Since its inception, the fund has generated an annualized return of 11.91%.

This follows a gain of 18.72% in 2024 and a 23.93% advance in 2023, which came after a decline of 17.95% in 2022. This sequence highlights the fund's pronounced sensitivity to growth and technology sector trends.

The fund's three-year standard deviation is 12.17%, with an equity beta of 0.94, indicating a volatility profile slightly lower than that of the S&P 500. This is attributed to the inclusion of non-U.S. markets, albeit in a subordinate role.

A U.S.-Heavy, Tech-Centric Portfolio

A geographical breakdown reveals a strong U.S. bias:
* United States: 70.5%
* Japan: 5.5%
* United Kingdom: 3.8%
* Canada: 2.9%
* Switzerland: 2.4%
* France: 2.4%
* Germany: 2.2%

With approximately 70% of assets in U.S. equities, URTH effectively trades as a proxy for American large-cap stocks, supplemented by limited allocations to other industrialized nations.

Sector allocation paints a similar picture of concentration. Information technology constitutes nearly 28% of the fund, followed by financials at around 16% and industrials at 10.4%. This pronounced tilt toward high-growth tech names has amplified returns during bullish phases but concurrently elevates concentration risk.

The top ten holdings, accounting for roughly 27.4% of the fund's assets, are dominated by U.S. technology and communication services firms:
* NVIDIA: 5.49%
* Apple: 4.83%
* Microsoft: 4.11%
* Amazon: 2.66%
* Alphabet Class A: 2.18%
* Broadcom: 1.87%
* Alphabet Class C: 1.84%
* Meta Platforms: 1.72%
* Tesla: 1.64%
* JPMorgan Chase: 1.07%

NVIDIA served as the primary performance engine in 2025, bolstered by sustained high demand for AI infrastructure. JPMorgan Chase appears as the sole financial institution in this top-tier list.

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

Trading, Valuation, and Technical Perspective

URTH closely tracks the MSCI World Index (Net), with a one-year tracking difference of approximately 21 basis points. The fund offers strong liquidity for investors:
* 30-Day Median Bid-Ask Spread: 0.03%
* Average Daily Volume: 459,376 shares
* Year-End 2025 Trading: Approximately 0.15% above Net Asset Value

Current valuation multiples reflect significant growth expectations:
* Price-to-Earnings Ratio: 26.29
* Price-to-Book Ratio: 3.92
The substantial weightings in U.S. tech stocks are a key driver of these elevated multiples.

From a technical standpoint, URTH reached a 52-week high of $187.84 in late December 2025. The area around $188 acts as a near-term resistance level. Support is evident in the $182 to $183 range, derived from 30-day average prices.

Competitive Landscape and Index Methodology

When compared to broader global equity ETFs, URTH's focused mandate becomes clear. A side-by-side look shows:
* URTH Expense Ratio: 0.24% | Assets Under Management: $6.73 billion | Holdings: 1,320 | 2025 YTD Return: 22.63%
* iShares MSCI ACWI (ACWI) Expense Ratio: 0.32%
* Vanguard Total World Stock (VT) Expense Ratio: 0.06%

Unlike URTH, both ACWI and VT include emerging markets in their portfolios. VT, with over 9,900 holdings, provides vastly greater diversification and is the clear cost leader. ACWI's marginally higher 2025 return can be partly attributed to contributions from major emerging market companies like Taiwan Semiconductor.

URTH tracks the MSCI World Index, which covers large- and mid-cap companies across 23 developed nations. By deliberately excluding exposure to emerging markets and small-cap stocks, the fund offers a targeted, yet less broadly diversified, play on developed market bourses. Its 0.24% fee is competitive within the developed markets segment.

Fund Structure and Forward Considerations

The ETF employs a physical replication strategy and makes semi-annual distributions. The underlying MSCI World Index is rebalanced quarterly, with the next adjustment scheduled for February 2026.

A potential structural change looms: MSCI has proposed excluding companies with significant cryptocurrency holdings on their balance sheets from its core indices. A final decision is expected in January 2026. If implemented, this could influence URTH's portfolio composition to a limited degree.

Structurally, URTH remains a clearly defined developed markets ETF with unmistakable U.S. and technology dominance. Its strong performance from 2023 through 2025 aligns with this positioning during an AI-driven market rally. The fund's sustained risk-adjusted returns are reflected in a Morningstar 5-star rating, underscoring its established role within the developed equities universe.