A significant structural change is on the horizon for the iShares MSCI World ETF. Index provider MSCI has scheduled a revised free-float calculation methodology for implementation in May 2026. Investors in the $6.8 billion fund are now assessing the potential impact on the heavily weighted technology sector constituents.
Strong Performance Sets the Stage
The ETF has delivered a net asset value (NAV) total return of 2.12 percent since the start of the year (early February 2026), building upon a robust performance throughout 2025. Its 52-week price range spans from $136.34 to $191.43, reflecting a substantial climb fueled largely by technology sector momentum and investments in artificial intelligence.
With an expense ratio of 0.24 percent, the iShares MSCI World ETF is positioned in the mid-range among comparable global equity funds. Assets under management reached approximately $6.84 billion as of February 4, 2026.
Index Review Timeline and Transition Plan
MSCI announced on February 3, 2026, that the results of its February index review will be published shortly after 23:00 Central European Time on February 10, 2026. All changes will take effect at the market close on February 27, 2026.
This review encompasses several indices, including the MSCI Global Standard, MSCI Global Small Cap, and MSCI Micro Cap indices. However, MSCI has instituted a transitional measure: newly added securities will be assessed using the existing methodology, while most other adjustments will be postponed until the new free-float framework launches in May.
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Methodology Shift Aims at Precision and Stability
The reform is designed to enhance the precision of free-float measurement and improve benchmark stability. According to MSCI’s announcement on January 27, 2026, the February transitional measure aims to prevent undesirable portfolio turnover ahead of the major May implementation.
Market observers are questioning whether the methodological adjustments will influence the already high concentration in major technology stocks. The MSCI World Index currently comprises 1,319 securities with a total market capitalization of $84.69 trillion (as of January 30, 2026).
The current top-ten holdings underscore the dominance of U.S. technology companies:
- NVIDIA: 5.48%
- Apple: 4.55%
- Microsoft: 3.59%
- Amazon: 2.71%
- Alphabet (Class A & C): 4.27% combined
- Meta Platforms: 1.84%
- Broadcom: 1.75%
May Implementation Holds the Key
Initial details from the February review will emerge on February 10. The true directional shift, however, will occur in May 2026 when MSCI fully activates its new calculation method. It remains to be seen whether this will lead to broader diversification within the index or if the technology sector’s prevailing dominance will largely persist.
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