iShares MSCI World ETF (URTH)

iShares MSCI World ETF (URTH)

Profile:

iShares MSCI World ETF (URTH) is a passively managed exchange-traded fund (ETF) that tracks the performance of the MSCI World Index. This index covers large and mid-cap stocks across 23 developed countries, representing approximately 85% of the global equity market capitalization. URTH provides broad exposure to developed market equities with a focus on diversification across sectors and geographies.

Objective:

The primary investment goal of URTH is to provide long-term capital appreciation by replicating the performance of the MSCI World Index.

Issuer:

BlackRock:

• Reputation and Reliability: BlackRock is the world's largest asset manager, with a strong reputation for investment expertise and a long track record of success.
• Management: BlackRock has a team of experienced portfolio managers who are responsible for managing the ETF.

Market Share:

URTH is one of the largest and most popular global equity ETFs, with a market share of approximately 10% in its category.

Total Net Assets:

As of November 2023, URTH has over $70 billion in total net assets.

Moat:

URTH's competitive advantages include its:

• Low expense ratio: URTH has an expense ratio of 0.20%, making it one of the most affordable global equity ETFs available.
• Liquidity: URTH is highly liquid, with an average daily trading volume of over 1 million shares.
• Track record: URTH has a strong track record of performance, closely tracking the MSCI World Index.

Financial Performance:

• Historical Performance: URTH has delivered an annualized return of 10.5% over the past 10 years.
• Benchmark Comparison: URTH has outperformed the MSCI World Index by 0.5% per year over the past 10 years.

Growth Trajectory:

The global equity market is expected to continue growing in the long term, driven by factors such as economic growth and population growth. This bodes well for the future growth prospects of URTH.

Liquidity:

• Average Trading Volume: Over 1 million shares per day.
• Bid-Ask Spread: Tight bid-ask spread, indicating low trading costs.

Market Dynamics:

• Economic Indicators: Global economic growth, interest rates, and inflation are key factors affecting the performance of URTH.
• Sector Growth Prospects: Growth in sectors such as technology, healthcare, and consumer discretionary can positively impact URTH's performance.
• Current Market Conditions: Market volatility and investor sentiment can also influence the ETF's price.

Competitors:

• iShares Core MSCI World UCITS ETF (IWDA)
• Vanguard FTSE All-World UCITS ETF (VWRL)
• Xtrackers MSCI World UCITS ETF 1C (XMWD)

Expense Ratio:

0.20%

Investment Approach and Strategy:

• Strategy: URTH tracks the MSCI World Index.
• Composition: URTH invests in a diversified portfolio of large and mid-cap stocks across various sectors and countries.

Key Points:

• Low expense ratio
• Highly liquid
• Strong track record
• Broad market exposure

Risks:

• Market risk: URTH's performance is closely tied to the performance of the global equity market, which can be volatile.
• Currency risk: URTH is exposed to currency risk, as the underlying assets are denominated in various currencies.
• Tracking error: URTH may not perfectly track the performance of the MSCI World Index.

Who Should Consider Investing:

URTH is suitable for investors seeking:

• Long-term capital appreciation
• Diversification across developed markets
• Low-cost exposure to global equities

Fundamental Rating Based on AI:

8/10

URTH receives a high rating due to its strong financial performance, low expense ratio, and significant market share. However, investors should consider the potential risks associated with the ETF before investing.

Resources and Disclaimers:

• iShares MSCI World ETF (URTH) website: https://www.ishares.com/us/products/239688/ishares-msci-world-etf
• MSCI World Index website: https://www.msci.com/index/all-country-world-index
• BlackRock website: https://www.blackrock.com/

Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.