The iShares MSCI World ETF (URTH) continues to demonstrate its powerful appeal for investor capital. This fund, which tracks the performance of developed markets worldwide, has gathered significant momentum, attracting net inflows of $1.72 billion in the previous year alone. Its assets under management now stand at a substantial $6.57 billion. Performance in 2025 has been notably strong, with the ETF posting a gain of 18.16%.
Performance and Portfolio Drivers
This impressive performance is largely fueled by two key factors: the overwhelming dominance of the technology sector and the continued leadership of US equities. URTH provides exposure to the MSCI World Index, a basket of 1,323 holdings across 23 developed nations. Its current positioning allows it to capitalize on powerful market trends, including the proliferation of artificial intelligence and the ongoing shift toward digital transformation.
A growth-oriented strategy has yielded significant benefits. A considerable portion of the fund’s assets is concentrated in its top ten holdings, which collectively account for 27.09% of the portfolio. These positions are led by the world’s technology giants.
Leading Portfolio Holdings:
* NVIDIA Corporation: 5.65%
* Apple Inc.: 4.94%
* Microsoft Corporation: 4.32%
* Amazon.com Inc.: 2.94%
* Alphabet Inc. (Class A): 2.00%
With technology stocks representing 29.48% of the total allocation, followed by financial services at 15.76%, this strategic emphasis has been a primary contributor to the fund’s annual returns.
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Geographic Allocation and Historical Returns
The fund’s geographic distribution underscores a clear reliance on the United States. American equities make up 72.75% of the portfolio, a significant lead over the Eurozone’s 8.25% and Japan’s 5.48%. This US-centric weighting proved advantageous in 2025, as American markets delivered outsized returns.
Historical performance data further solidifies the fund’s competitive standing. It has achieved an annualized three-year return of 23.98%, outpacing many of its peers. Despite this strong growth, the fund maintains a moderate risk profile, evidenced by a standard deviation of 13.05%.
Key Metrics for Investors
From a risk perspective, URTH exhibits a beta of 0.95, indicating it has been slightly less volatile than the broader market. For income-focused investors, the fund offers a dividend yield of 1.28%, with distributions made on a semi-annual basis.
Trading efficiency is another attractive feature. A narrow bid-ask spread of 0.04% and a robust average daily trading volume exceeding 530,000 shares ensure high liquidity for investors entering and exiting positions.
The valuation metrics confirm the fund’s growth-oriented nature. A price-to-earnings (P/E) ratio of 25.83 and a price-to-book (P/B) ratio of 3.82 highlight the premium valuation of its underlying holdings.
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