Technology Sector Powers Strong Returns for iShares MSCI World ETF

MSCI World ETF US4642863926

The iShares MSCI World ETF (ticker: URTH) delivered a total return of 21.28% for the year 2025. This performance was largely fueled by the artificial intelligence boom and the robust health of developed equity markets. A pronounced focus on major technology holdings has been a defining characteristic of the fund's trajectory, presenting both opportunities and notable concentration risks.

In 2025, URTH's return of 21.28% slightly surpassed its benchmark, the MSCI World Index, which gained 21.09%. The fund provides exposure to 1,322 individual stocks across 23 developed nations. A significant geographical concentration is evident, with U.S. equities accounting for 72.19% of the portfolio. The information technology sector is the dominant industry allocation, representing 26.26% of fund assets.

Key Fund Data:
- Total Return (2025): 21.28%
- Number of Holdings: 1,322
- U.S. Weighting: 72.19%
- IT Sector Allocation: 26.26%
- Largest Holding: NVIDIA Corp at 5.44%

A Portfolio Shaped by Mega-Cap Technology

Reflecting its market-cap-weighted strategy, the ETF has a substantial allocation to its largest constituents. The top ten holdings collectively make up 27.0% of the portfolio, with U.S. technology and communication services firms featuring prominently.

Top Ten Holdings by Weight:
1. NVIDIA Corp (Technology) – 5.44%
2. Apple Inc (Technology) – 4.72%
3. Microsoft Corp (Technology) – 3.97%
4. Amazon.com Inc (Consumer Cyclical) – 2.66%
5. Alphabet Inc Class A (Communication Services) – 2.19%
6. Alphabet Inc Class C (Communication Services) – 1.85%
7. Broadcom Inc (Technology) – 1.83%
8. Meta Platforms Inc (Communication Services) – 1.70%
9. Tesla Inc (Consumer Cyclical) – 1.52%
10. JPMorgan Chase & Co (Financials) – 1.09%

The fund's significant stake in NVIDIA renders it particularly sensitive to trends in the AI and semiconductor space. Market volatility triggered by the January 2025 launch of the Chinese AI model DeepSeek highlighted the concentration risk inherent in such a tech-heavy portfolio.

Geographic and Sector Exposure

Beyond the overwhelming U.S. focus, other notable country weights include Japan (5.40%), the United Kingdom (3.56%), Canada (3.27%), and France (2.64%).

The sector breakdown underscores the technology tilt:
- Information Technology: 26.26%
- Financials: 16.68%
- Industrials: 11.69%
- Consumer Cyclical: 9.91%
- Health Care: 9.83%
- Communication Services: 8.61%

With 1,322 positions, the fund is more broadly diversified than the average comparable product, which typically holds around 364 stocks.

Risk Metrics and Trading Profile

URTH has demonstrated consistent, benchmark-close performance across multiple time horizons.

Performance Comparison vs. MSCI World Index:
- Year-to-Date (2025): URTH 21.28% | Index 21.09% | Difference: +0.19 ppt
- 1 Month: URTH 0.75% | Index 0.81% | Difference: -0.06 ppt
- 3 Months: URTH 3.03% | Index 3.12% | Difference: -0.09 ppt
- 3 Years (annualized): URTH 21.29% | Index 21.17% | Difference: +0.12 ppt
- 5 Years (cumulative): URTH 78.63% | Index 77.38% | Difference: +1.25 ppt

The fund's 3-year volatility stands at 11.59%. Its beta of 0.95 relative to the S&P 500 indicates it has been slightly less volatile than that large-cap U.S. benchmark.

The ETF is highly liquid and accessible for investors:
- 30-Day Average Volume: 436,969 shares
- 30-Day Median Bid/Ask Spread: 0.03%
- Premium/Discount to NAV: -0.09%
- 52-Week Price Range: $136.34 to $189.95 (USD)

URTH is trading near its all-time high, with the lower end of its 52-week range around $136.34 representing a technical support level.

Competitive Landscape: How URTH Compares

URTH competes within a crowded field of global equity ETFs, where differences in cost, coverage, and structure are key differentiators.

Comparison with Key Competitors:

Metric	URTH (iShares)	VT (Vanguard)	SPPW (SPDR)
Expense Ratio (TER)	0.24%	0.06%	0.12%
Assets Under Management	$6.9 billion	$57.2 billion	$17.5 billion
Number of Holdings	1,322	9,957	1,311
Underlying Index	MSCI World	FTSE Global All Cap	MSCI World
Domicile	USA	USA	Ireland
Distribution	Semi-Annual	Quarterly	Accumulating
1-Year Return (USD)	21.28%	22.43%	21.24%

While URTH's 0.24% fee is above cheaper alternatives like VT and SPPW, it remains below the category average of 0.35%. VT's broader return of 22.43% can be attributed to its inclusion of emerging markets and small-cap stocks, as reflected in its vastly higher number of holdings and larger asset base. SPPW tracks the same MSCI World Index as URTH but is structured as an Irish-domiciled, accumulating ETF with half the ongoing charges.

URTH attracted net inflows of $1.52 billion in 2025, including $646.81 million in the final quarter. For certain U.S.-based investors, the fund's domestic domicile and semi-annual distribution schedule may offer tax advantages.

Valuation, Outlook, and Key Considerations

The next scheduled review of the MSCI World Index is set for February 2026. Given the fund's substantial ~26% technology weighting, developments in AI infrastructure and the semiconductor sector will likely remain pivotal drivers of future performance.

Current valuation metrics suggest an elevated pricing level, consistent with a growth-oriented portfolio:
- Price-to-Earnings (P/E) Ratio: 26.04 (Category Average: 20.55)
- Price-to-Book (P/B) Ratio: 3.91
- Dividend Yield (Trailing 12 Months): 1.49%
- SEC Yield: 1.24%

Approximately 28% of the fund's assets are in non-U.S. securities. This allocation benefited from U.S. dollar weakness in 2025; the Dollar Index declined by 9.4% during the year, marking its weakest annual performance since 2017.