A Standout Year for the iShares MSCI World ETF

MSCI World ETF US4642863926

The iShares MSCI World ETF (URTH) has delivered a powerful performance throughout 2025, with its year-to-date return reaching approximately 20.5%. This impressive result has been fueled by strength in technology holdings and a sustained rally across developed equity markets, further bolstered by new policy initiatives in the United States and a softening US dollar.

Key Performance Metrics:
* Current Price: ~$186 USD
* Weekly Gain: +0.2%
* Monthly Gain: +3.35%
* Year-to-Date Return: +20.48%
* One-Year Return: +16.42%

A continued leadership role from major US technology firms has been a primary engine for the fund's gains in 2025. Sentiment, particularly within the semiconductor and software sectors, has also found support from US government "Tech Force" policies.

Adding to the positive momentum in December has been a weakening of the US dollar. Since roughly 30% of the portfolio is allocated to developed markets outside the United States, the returns from these regions translate into higher US-dollar values for American investors.

For many market participants, URTH represents a vehicle for relatively stable equity exposure, avoiding the higher volatility often associated with emerging markets, even amidst ongoing global geopolitical tensions.

Portfolio Composition and Key Holdings

The fund's composition remains heavily influenced by the technology sector. As of mid-December, it holds around 1,320 individual securities. However, a notable concentration risk is present, with the ten largest positions accounting for about 27% of the total fund assets.

Leading Holdings by Weight (%):

1. NVIDIA (5.24%): The fund's largest single position, benefiting from the ongoing AI hardware boom.
2. Apple (4.95%): A core holding demonstrating consistent appreciation.
3. Microsoft (4.08%): While its weighting has decreased slightly since early 2024, it remains central for software exposure.
4. Amazon (2.71%)
5. Alphabet A (2.17%)
6. Broadcom (2.18%): This holding has risen into the top tier, driven by robust semiconductor demand.
7. Alphabet C (1.84%)
8. Meta Platforms (1.69%)
9. Tesla (1.51%): Maintains a top-ten position despite a volatile performance trajectory.
10. Eli Lilly (~1.10%): The most significant non-technology holding, focused on the healthcare sector.

Regional and Sector Allocation

From a geographic perspective, US equities dominate, constituting over 70% of the fund's weight. Japan follows at approximately 5.4%, with further significant allocations to the United Kingdom, France, and Canada.

Sector-wise, Information Technology leads with a commanding share of nearly 29%. Financials represent the next largest segment at around 16%, followed by Healthcare at about 12%. This allocation effectively makes URTH behave more like a "US-plus" strategy rather than an evenly balanced global diversifier.

Fund Characteristics: Liquidity, Costs, and Distributions

The fund concludes the year with sustained positive momentum, supported by AI-related optimism and solid consumer data in developed economies.

URTH has approximately $6.6 billion in assets under management. Despite being smaller than some competing products, it maintains high liquidity. The bid-ask spread is tight at about 0.04%, making the ETF an efficient tool for both retail and institutional investors.

It tracks the MSCI World Index with high precision, exhibiting a tracking error below 0.10%. A semi-annual distribution of roughly $1.4951 per share was declared on December 16, resulting in a trailing distribution yield of approximately 1.27%.

Competitive Positioning and Considerations

This ETF is specifically designed for investors seeking global stock exposure while excluding emerging markets. This distinguishes it from broader "Total World" products that include developing economies.

A point for investors to weigh is the fund's expense ratio of 0.24%, which is higher than some broadly diversified global ETFs and simpler benchmark products. The key decision lies in balancing URTH's targeted focus on developed markets with a pronounced tech tilt against other, potentially lower-cost alternatives available in the marketplace.