Is the iShares MSCI World ETF Set to Benefit from Monetary Easing?

A resurgence in investor confidence, fueled by accommodative monetary policies, is creating a favorable landscape for the iShares MSCI World ETF (URTH). Global equity markets demonstrated robust performance in the third quarter of 2025, with major indices advancing on the back of supportive central bank actions and strong corporate earnings.

This exchange-traded fund tracks the MSCI World Index, providing exposure to large and mid-capitalization companies across developed global markets. It employs a physical replication strategy to mirror the index and distributes dividends to investors on a semi-annual basis. The fund maintains an expense ratio of 0.24% and has accumulated approximately $5.93 billion in assets under management.

Portfolio Composition and Geographic Focus

The fund’s holdings reveal a significant tilt towards specific sectors and regions. A substantial 28.24% of the portfolio is allocated to the technology sector, which represents its largest concentration. Financial services constitute the second-largest segment at 16.37%, while industrial companies account for 10.56% of the assets.

Should investors sell immediately? Or is it worth buying iShares MSCI World ETF?

From a geographic standpoint, the ETF exhibits a pronounced emphasis on North American markets, with the United States alone representing 75.49% of the total asset allocation. This heavy weighting reflects the substantial market capitalization and economic influence of major American corporations, particularly within the technology industry.

Monetary Policy as a Potential Catalyst

The prevailing monetary environment could provide additional momentum for the fund. Declining interest rates enhance the relative appeal of equities compared to fixed-income securities, often channeling capital towards risk assets. Growth-oriented stocks, especially those in the technology sector that feature prominently in the URTH portfolio, tend to perform well under such conditions.

However, this concentrated exposure to U.S. technology giants also introduces specific vulnerabilities. Should this particular market segment experience a significant downturn, the ETF would likely be disproportionately affected due to its heavy reliance on these holdings.