A Focus on Developed Markets Propels This Global ETF to Strong Gains

MSCI World ETF US4642863926

As 2025 draws to a close, the iShares MSCI World ETF (ticker: URTH) is demonstrating notable strength, buoyed by the resilience of advanced economies and the sustained momentum of major U.S. technology stocks. Its year-to-date return stands at approximately 21%. Additional support has come from a softening U.S. dollar, which has enhanced the value of the fund's non-dollar denominated holdings. While many global benchmarks grapple with volatility in emerging markets, URTH’s exclusive concentration on developed nations is proving advantageous.

The fund tracks the MSCI World Index, providing exposure to roughly 85% of the free-float adjusted market capitalization across 23 developed countries. Its current trajectory is closely tied to the "Quality Growth" theme within these mature economies.

Key factors influencing performance in December 2025 include:

• Shifting Leadership in Technology: NVIDIA has surpassed both Apple and Microsoft to become the fund's largest individual holding. This shift underscores the semiconductor sector's pivotal role in driving the equity rally witnessed throughout the year.
• Currency Tailwinds: Anticipated continued dollar weakness in the fourth quarter has provided an extra boost for U.S.-based investors, lifting the portfolio's Euro and Yen-denominated assets, which constitute about 30% of the fund.
• Supportive Monetary Policy: Coordinated interest rate cuts by central banks across Europe and North America have created a favorable liquidity backdrop, helping to sustain elevated equity valuations in developed markets.

Portfolio Composition and Key Holdings

A significant allocation to the information technology sector means the ETF's near-term performance is largely dictated by major U.S. tech giants. The prominent "Magnificent Seven" stocks feature heavily among its top positions as of early December 2025.

Top Ten Holdings by Weight:

1. NVIDIA (5.44%) – Increasingly influences the fund's volatility
2. Apple (4.97%) – A consistent source of cash flow
3. Microsoft (4.20%) – Central to enterprise software
4. Amazon (2.65%)
5. Alphabet Class A (2.23%)
6. Broadcom (2.20%) – Benefiting from AI infrastructure expansion
7. Alphabet Class C (1.88%)
8. Meta Platforms (1.72%)
9. Tesla (1.52%)
10. JPMorgan Chase (1.00%) – The sole non-technology stock in the top ten

These ten positions collectively account for around 27.8% of the portfolio. Despite its global mandate, the geographic allocation is heavily skewed toward the United States, which represents approximately 70% of assets. Japan, the United Kingdom, and France follow distantly. Consequently, the fund's historical performance shows a close correlation with U.S. technology indices like the Nasdaq 100.

Financial Metrics and Market Liquidity

The market-capitalization weighting methodology of URTH, which favors large, growth-oriented companies, has enabled it to outperform many equal-weighted global strategies in 2025.

Relevant financial data as of mid-December 2025:

• Share Price: Approximately $186.25 (nearing its 52-week high of $187.84)
• 2025 Year-to-Date Return: +20.91%
• 1-Year Return: +16.42%
• 1-Month Performance: +1.54%
• Dividend Yield: ~1.23% (distributed semi-annually)
• Total Expense Ratio (TER): 0.24%

With assets under management near $6.6 billion, URTH offers high tradability. Average daily trading volume ranges between 260,000 and 450,000 shares, with bid-ask spreads typically between $0.02 and $0.05. The fund generally trades close to its net asset value, indicating efficient arbitrage mechanisms are in place.

Outlook and Strategic Position

This ETF clearly occupies the niche of a globally diversified fund that deliberately excludes emerging markets, pairing that strategy with a pronounced overweight in U.S. technology. Looking ahead, three primary factors will likely dictate its future course: the earnings momentum of major tech corporations, the ongoing cycle of investment in artificial intelligence, and the path of interest rates and currency movements within key developed nations.