The MSCI World ETF’s Record Run Masks a Hidden Concentration Risk

As December 2025 unfolds, the iShares MSCI World ETF continues its relentless climb, setting successive record highs and charting a course for an annual return exceeding 20%. However, the fund’s reputation for providing perfect global diversification is becoming increasingly misleading. With US technology stocks exerting extreme dominance, investors are compelled to ask a critical question: does this product offer a genuine stake in the world economy, or is it merely a concentrated, indirect bet on American tech?

The “World” label implies broad international exposure, but the reality at the close of 2025 tells a different story. The ETF’s stellar performance is almost entirely tethered to the fortunes of US equity markets Read more...