The Double-Edged Sword of Mega-Cap Concentration in Global ETFs

Global equity markets are currently experiencing a remarkable upward trajectory, fueled by persistent investor enthusiasm for technological advancements, particularly in artificial intelligence. While the iShares MSCI World ETF is a direct beneficiary of this powerful trend, its substantial reliance on a handful of U.S. technology behemoths introduces significant portfolio risks that investors cannot ignore.

This market surge is being propelled by unexpectedly robust investment flowing into the technology sector, coupled with a supportive, expansive monetary policy. Within this environment, cyclical sectors are substantially outperforming their defensive counterparts, with technology stocks leading the charge in an unwavering upward climb.

An examination of the ETF’s holdings reveals a striking Read more...