The MSCI World ETF’s Tech-Heavy Ascent in 2026

MSCI World ETF US4642863926

The iShares MSCI World ETF (URTH) has begun the year with notable momentum. Trading near the $190 level in mid-January, the fund is hovering close to record highs, having delivered a year-to-date return of approximately 2.1%. This positive start is attributed to the US Federal Reserve's interest rate cut in December and robust corporate earnings across developed markets. Yet, the undeniable primary catalyst remains the technology sector, with the artificial intelligence boom visibly reshaping the ETF's composition.

A significant shift occurred in the fund's top holdings at the start of 2026. As of January 14, 2026, NVIDIA has ascended to become the largest single position within the URTH portfolio, surpassing both Apple and Microsoft. This change highlights the market's intense focus on AI infrastructure and the growing dominance of semiconductor stocks.

Leading Holdings (as of January 14, 2026):

• NVIDIA: 5.26 %
• Apple: 4.56 %
• Microsoft: 3.83 %
• Amazon: approx. 2.8 %
• Alphabet A: approx. 2.2 %
• Alphabet C: approx. 1.9 %
• Broadcom: approx. 1.8 %
• Meta Platforms: approx. 1.7 %
• Tesla: approx. 1.5 %
• JPMorgan Chase: approx. 1.1 %

This lineup underscores a pronounced concentration in major U.S. technology and growth equities. The collective weight of the "Magnificent Seven" now exceeds 20% of the total portfolio. While this has enhanced performance, it also increases the fund's dependence on semiconductor and software stocks.

Geographically, the ETF maintains a heavy bias toward the United States, which accounts for over 70% of its allocation. Japan and the United Kingdom follow with significantly smaller weightings. Consequently, URTH effectively provides exposure to "the U.S. plus other developed markets," rather than offering a broadly diversified global allocation with equal weight across regions.

Performance Metrics and Market Position

URTH continues to build on its strong performance from recent months, outpacing many actively managed strategies and global indices that include emerging markets.

• 1-Week Return: approx. +0.7%
• 1-Month Return: +2.67%
• Year-to-Date (2026): +2.10%
• 1-Year Return (TTM): +25.18%

The fund manages assets of nearly $7 billion. With an average daily trading volume around 450,000 shares and tight bid-ask spreads of approximately $0.07, it offers solid liquidity, even if it trails the most liquid U.S. index giants like IVV or VTI.

Valuations are elevated, with a price-to-earnings ratio hovering around 25.2. This premium over historical averages for developed markets reflects the substantial allocation to high-growth U.S. tech stocks. Market expectations for continued earnings growth are consequently high, meaning any disappointments could have a pronounced negative impact.

Comparing Global ETF Alternatives

Within the universe of global ETFs, URTH occupies a middle ground. It provides targeted exposure to developed nations while excluding emerging markets, but charges a higher expense ratio than some competitors.

Key Fund Comparison:

Fund	Expense Ratio	Assets Under Management	Focus	Holdings Count	YTD 2026 Return	Largest Holding
iShares MSCI World (URTH)	0.24%	$6.97 billion	Developed Markets	~1,320	+2.10%	NVIDIA (5.26%)
Vanguard Total World (VT)	0.06%	$62.1 billion	Global (Inc. EMs)	Over 9,800	+2.48%	Apple (~3.9%)*
iShares MSCI ACWI (ACWI)	0.32%	$26.4 billion	Global (Inc. EMs)	~2,300	+2.43%	Apple (~4.0%)*

*Weightings in VT and ACWI differ slightly from URTH due to distinct capping rules and index methodologies.

Structurally, URTH is suited for investors who consciously wish to exclude emerging markets like China, India, or Brazil, potentially due to political risk or higher volatility concerns. It is noteworthy, however, that VT's year-to-date return of +2.48% slightly leads URTH, suggesting that smaller caps and emerging markets contained within VT have recently contributed to performance.

Forward Outlook: Rebalancing and Key Drivers

Attention now turns to the MSCI World Index's scheduled review in February. Given the powerful rally in semiconductor stocks, index weight caps or adjustments could prompt portfolio rebalancing, particularly for heavyweights like NVIDIA.

Several potential market movers are on the horizon:

• Tech Earnings Season: With a P/E ratio near 25, URTH is highly sensitive to upcoming Q4 2025 results from major tech firms such as NVIDIA, Microsoft, and Apple. Any hint of slowing investment in the AI sector would have an outsized effect, as the fund's largest positions are concentrated precisely in this segment.

• Currency Effects: A weaker U.S. dollar following recent rate cuts could provide an additional boost to the returns of the fund's roughly 30% non-U.S. holdings when converted to dollars, potentially offering a positive contribution to overall performance.

From a chart perspective, the ETF is currently consolidating near the $190 level, close to all-time highs. A key support zone resides around the 50-day moving average near $180, with another crucial area at the breakout level of $175. A sustained move above $190 could pave the way for further buying interest, potentially setting the stage for a medium-term advance toward the $200 area, provided the supportive backdrop of interest rates, tech earnings, and AI investment remains intact.