The MSCI World ETF Approaches New Peaks Amidst a Shifting Global Landscape

As 2025 draws to a close, the iShares MSCI World ETF (ticker: URTH) is trading near its record high, having delivered investors an approximate 20% return for the year. This performance is being fueled by two concurrent trends: sustained strength in the U.S. technology sector and a notable recovery in non-U.S. markets, the latter amplified by a weakening U.S. dollar. However, a deep dive into the fund’s holdings raises a critical question about its diversification, revealing a portfolio heavily concentrated in a handful of American tech giants.

The investment theme for 2025 could be characterized as “Quality Growth.” The primary engine remains the U.S. economy, but currency movements provided Read more...