The iShares MSCI World ETF (ticker: URTH) has demonstrated formidable performance in 2025, posting a gain exceeding 20% since the start of the year. This upward trajectory has been fueled primarily by dominant technology firms and widespread investment in artificial intelligence infrastructure, all within a fund designed to offer extensive exposure to developed equity markets globally.
Portfolio Snapshot and Performance Drivers
– Year-to-Date Return (2025): More than +20%
– Assets Under Management: Approximately $6.6 billion
– Holdings: 1,320 positions across 23 developed economies
– Benchmark: The MSCI World Index
The theme of investing in developed markets has proven resilient this year. Earlier concerns regarding U.S. trade policy and the potential impact of new tariffs have, so far, failed to derail the positive momentum. The underlying MSCI World Index, which the URTH ETF tracks, continues to draw significant strength from the technology sector’s persistent vigor. Companies specializing in semiconductors and software, which are direct beneficiaries of the ongoing build-out of AI infrastructure, are key contributors to this performance.
Should investors sell immediately? Or is it worth buying MSCI World ETF?
A major tailwind for the index’s tech-oriented profile is the forecasted capital expenditure from large cloud providers, or “hyperscalers,” estimated at around $450 billion for 2025. Furthermore, the index’s semi-annual rebalancing in November 2025 introduced 69 new constituents. This adjustment resulted in a modest decrease in overall concentration without fundamentally altering the growth-oriented nature of the benchmark.
Examining Holdings and Concentration Risk
Within the URTH portfolio, large U.S. technology stocks understandably occupy prominent positions. The fund’s ten largest holdings collectively account for 26.77% of its assets. Notably, this level of concentration is significantly lower than the average of comparable ETFs, which stands at 45.87%.
This structure allows the ETF to capture the influential performance of global technology leaders while maintaining a comparatively broader diversification across its other holdings. Looking ahead, the continued advancement of URTH will likely hinge on whether the substantial investments in AI infrastructure persist and if the technology sector within developed markets maintains its current robust health.
Ad
MSCI World ETF Stock: Buy or Sell?! New MSCI World ETF Analysis from December 23 delivers the answer:
The latest MSCI World ETF figures speak for themselves: Urgent action needed for MSCI World ETF investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from December 23.
MSCI World ETF: Buy or sell? Read more here...
