URTH Stock Recent News

iShares MSCI World ETF invests in stocks internationally within a variety of sectors. This ETF recently enhanced its United States-based holdings for their historical performance, but rate hikes could exploit this.

The high weighting of overvalued U.S. stocks, the strong likelihood of profit margin mean reversion, and the weak growth outlook, suggest the URTH is unlikely to keep pace with inflation. The ETF has exposure to international developed markets yet the outperformance of U.S. stocks over the past decade has raised the U.S.' weighting in the ETF to 68%.

Investing in exchange-traded funds carries several risks, some of which are less obvious than others. In any case, investing in ETFs is not a foolproof way to get rich. Using iShares' MSCI World ETF URTH as an example, I will highlight important aspects that should be considered before investing in ETFs.

URTH is supposed to be the broadest ETF out there but it suffers from ultimately being dominated by US exposures and the US geography. As such, its multiple is high considering we're coming into a recession and that supply chains have to some extent been permanently damaged.