The MSCI World ETF’s Tech-Heavy Portfolio Fuels Strong Gains

MSCI World ETF US4642863926

The iShares MSCI World ETF (URTH) has delivered a standout performance so far this year, significantly outpacing its benchmark. The fund has generated a year-to-date return of 20.79%, comfortably exceeding the 17.43% gain posted by the MSCI World Index over the same period. Its assets under management currently stand at $6.6 billion.

This exchange-traded fund provides exposure to the MSCI World Index, which encompasses 1,322 companies across 23 developed economies. The portfolio exhibits a pronounced geographic concentration, with the United States accounting for approximately 70% of its holdings. Other nations, including Japan (5.4%), the United Kingdom (3.75%), Canada (3.33%), and Switzerland (2.66%), represent substantially smaller allocations.

Key Fund Details:
* Year-to-Date Performance: 20.79%
* Assets Under Management: $6.6 billion
* Number of Holdings: 1,322
* U.S. Allocation: ~70%

A major factor behind the fund's outperformance is its substantial weighting toward the technology sector, which constitutes 28.40% of the portfolio. This significant allocation proved advantageous in 2025 as leading American technology firms continued to benefit from widespread enthusiasm surrounding artificial intelligence.

The fund's top ten holdings alone represent roughly 27.6% of total assets. This concentration in a handful of mega-cap names, predominantly within the tech sphere, has been a primary driver of returns, reflecting the current market dominance of these industry giants.

Broad Diversification Across Sectors and Regions

Beyond technology, the ETF maintains diversification through exposure to several other major sectors. Financial services represents the second-largest allocation at 16.38%, followed by industrial companies (10.61%), consumer cyclical goods (10.07%), healthcare (9.15%), and communication services (9.04%).

Despite the heavy U.S. tilt, investors gain access to a wide array of developed markets globally through its more than 1,300 individual securities. The fund's structure offers a balance between the concentrated momentum provided by its largest positions and the broad, foundational exposure of a global developed markets index.