MSCI World ETF Faces Key Index Review in February

MSCI World ETF US4642863926

BlackRock's iShares MSCI World ETF (ticker: URTH) is approaching a significant index review scheduled for February by index provider MSCI. This fund, which tracks large and mid-cap companies across developed markets, holds approximately $7 billion in assets under management and represents 1,322 individual equities.

A dominant feature of the URTH portfolio is its substantial concentration in the technology sector. US equities account for roughly 72% of the fund's allocation, reflecting the market-cap weighted nature of the underlying MSCI World Index for developed nations.

As of January 28, 2026, the fund's characteristics include:
- Expense Ratio: 0.24% per annum
- Price-to-Earnings (P/E) Ratio: 26.32
- Price-to-Book (P/B) Ratio: 3.93
- 30-Day SEC Yield: 1.24%

The top ten holdings collectively represent about 26% of the fund's total assets. Leading the list is NVIDIA with a 5.32% weighting, followed by Apple at 4.37% and Microsoft at 3.78%. The remaining positions in this elite group consist of Amazon, Alphabet, Broadcom, Meta, Tesla, and Eli Lilly. After technology, the financial and healthcare sectors represent the next largest allocations.

MSCI Reverses Course on Crypto Holdings

In a notable policy shift reported by Reuters on January 6, 2026, MSCI announced it would continue to allow companies with significant digital asset exposure to remain eligible for its indexes. The provider had initially considered excluding firms whose assets consist of at least 50% cryptocurrency but has withdrawn that proposal for the time being.

MSCI cited a need for further analysis and additional consultation with market participants. The decision aims to better distinguish between pure investment firms and companies that hold digital assets as part of their core business operations.

The software company MicroStrategy (formerly Strategy) described the outcome as "a strong result for neutral indexing." Its shares climbed approximately 6% in after-hours trading following the announcement.

Competitive Landscape and Costs

The iShares MSCI World ETF operates in a crowded field of international equity funds. Key competitors include:
- The Vanguard Total World Stock ETF (VT), with an expense ratio of 0.07%, which covers both developed and emerging markets.
- The Schwab International Equity ETF (SCHF), charging 0.03%, focusing on developed markets outside the United States.

While URTH's 0.24% fee is above the category average for broad developed-market ETFs, it remains competitive among funds specifically tracking the MSCI World Index.

Anticipating the February Review

The upcoming February index rebalance by MSCI represents the next major event for the fund. MSCI has indicated plans for a broader consultation regarding the treatment of non-operating companies, which may lead to future adjustments in index methodology.

Investors are advised to monitor the performance of the fund's largest technology holdings closely. Given their substantial weightings, price movements in NVIDIA, Apple, and Microsoft will have an outsized impact on the ETF's overall returns. The fund maintains strong liquidity, with an average daily trading volume of around 441,000 shares as of January 27, 2026.

@ boerse-global.de | US4642863926 MSCI