Belgium-Focused ETF Near Fresh Peak Ahead of MSCI Rewrite

iShares MSCI Belgium ETF US4642863017

The Belgian equity landscape currently shows a split picture. While the BEL 20 recently hit a fresh record, economists caution on the sustainability of public finances. At the same time, MSCI's latest index review is triggering activity within the iShares MSCI Belgium ETF, prompting questions about how solid the foundation of this latest rally really is.

• The BEL 20 reached a new all-time high on February 11.
• The MSCI index review takes effect on March 2.
• 2026 GDP growth is forecast at 1.1%.

The MSCI index reassessment announced last Tuesday brings changes that become effective on March 2. Such reweightings often prompt shifts inside the ETF in order to accurately mirror the reference index MSCI Belgium IMI 25/50. A notable methodological shift stands out: MSCI is moving away from a plan to completely exclude Digital Asset Treasury Companies from the indices, and instead will apply targeted restrictions.

Growth Outlook and Fiscal Concerns

Even with recent gains in the utilities, telecommunications, and consumer services sectors, the overall footing remains challenging. The Federal Planning Bureau forecasted a stable but modest 1.1% GDP expansion for the current year. Inflation sits at 1.9%, just shy of the European Central Bank?s target, while concerns about fiscal sustainability persist. New work-permit rules in Flanders, effective since the start of the year, could offer additional momentum or pose hurdles for labor-intensive industries.

Focus on the Heavyweights

The performance of the iShares Belgium ETF is tightly tied to its largest holdings, with a tilt toward healthcare and consumer staples. Core positions include Anheuser-Busch InBev, Argenx, and UCB. The operating results of these companies will be a key determinant of whether the Belgian market can sustain its current level.

Market participants are now watching the upcoming earnings season for the major index constituents and the latest euro-area data. The actual reweighting scheduled for March 2 will set the next milestone, as the ETF finalizes its composition to align with the updated MSCI guidelines.