iShares MSCI World ETF

URTH

Market cap $6.86B

NZAC screens for climate risks and has a slightly heavier technology allocation than URTH. URTH has nearly twice as many holdings as the climate-focused ETF.

NZAC applies an ESG climate screen and leans more heavily into technology, while URTH follows the traditional developed-markets universe. NZAC charges a lower expense ratio but is much smaller and less liquid than URTH, which may affect trading costs for larger investors.

The iShares MSCI World ETF has trailed the S&P 500 over the past decade, notwithstanding a marginal outperformance in 2025. The ETF is principally overweight in U.S. megacap tech stocks, resulting in a high trailing P/E ratio. URTH also has a sizable position in cyclical sectors. As such, returns in 2026 will depend on how AI-related stocks perform, as well as the overall economic momentum of the global economy.

iShares MSCI World ETF charges double the expense ratio of SPDR MSCI ACWI Climate Paris Aligned ETF and pays a much lower dividend yield URTH covers more holdings and has outperformed NZAC over the past year and five years, but skips emerging markets and climate screens NZAC tilts more toward technology and climate-focused criteria, while URTH offers greater liquidity and a longer track record

Expanding your horizons and considering neglected sectors can help you identify bargain opportunities while defending your investment portfolio from a stock-market decline.

We run a highly concentrated portfolio of high-quality companies from around the world and some Bitcoin, which we share openly every quarter here on Seeking Alpha. We benchmark our performance against the S&P 500, the Nasdaq 100, and the MSCI World indices, and have outperformed each of them over the past two and a half years. This quarter, we added the LTL Logistics company Old Dominion to the portfolio.

Valuations in U.S. markets are at extremes, raising the risk of low or negative returns over the medium term. The iShares MSCI World ETF offers global developed market exposure but excludes emerging markets, with a net expense ratio of 0.24%. URTH's high P/E ratio and low 1.29% dividend yield signal expensive valuations and limited return potential, especially if growth slows.

As tariff tensions ease and investor sentiment improves, global ETFs like ACWI are poised for a rally.

URTH is overly concentrated in US equities, offering little true international diversification and closely mirroring S&P 500 performance at lower volatility. A simple 70% SPY + 30% cash or risk-free assets portfolio outperforms iShares MSCI World ETF on both returns and drawdown protection. For genuine global diversification, combining SPY with targeted ex-U.S. developed (IEFA) and emerging markets (VWO/IEMG) ETFs is a superior approach.

Global equities hit a record high as AI optimism, easing trade tensions, and solid global data drive ETF momentum worldwide.