The Hidden Concentration Risk in a Popular Global ETF
31.10.2025 - 05:05:02MSCI World ETF US4642863926
A significant concentration of assets within the iShares MSCI World ETF (URTH) is raising questions about its diversification. The ten largest holdings now account for 27.6% of the entire fund’s portfolio. This heavy reliance on a handful of technology behemoths exposes what is marketed as a broadly diversified investment to substantial sector-specific volatility.
Geographical Imbalance and US Dominance
The fund’s geographical allocation shows a pronounced tilt, with US equities representing more than 70% of its holdings—a record level of concentration. Japan and the United Kingdom trail far behind with significantly smaller allocations. This lopsided geographic distribution means that performance is overwhelmingly dictated by events on Wall Street, challenging the “global” nature of this ETF.
