Analysis: Why are certain stocks holding back the MSCI World ETF and what happens next?

Analysis: Why are certain stocks holding back the MSCI World ETF and what happens next?

According to a report by www.boerse-online.de,
The MSCI World Index has risen nicely since the beginning of the year. This was mainly due to strong US stock exchanges and also the Japanese Nikkei index, which had made good gains. But just this week, when the new record high for the MSCI World Index was within reach, a few tech stocks lost their nerve.

These stocks are currently holding back the MSCI World ETF

Apple makes up around 5 percent of the total ETF on the MSCI World. After a good start to the year, the share fell by 4 percent this week before the quarterly figures on Thursday evening. No wonder it then slows down the ETF.

The same applies to Google parent Alphabet. With a share of around 2.6 percent in the MSCI World, Alphabet shares crashed by 8 percent this week after the quarterly figures and thus slowed down the index considerably.

Even Microsoft couldn't keep up the pace after good quarterly figures and is down around 1.5 percent this week. With around 4.4 percent of the index, Microsoft shares also have a slight braking effect.

Tesla also slowed down sharply last week with minus 14 percent and increased slightly by two percent this week. But with a 1.1 percent share in the ETF you notice that.

While Big Tech has driven the MSCI World ETF higher over the last few weeks, these stocks are currently slowing down the index. While such fluctuations are normal, they can cause concern for market participants and make the future performance of the ETF uncertain.

Is a new record high coming soon for the MSCI World ETF?

As you can see in the Tradingview chart above, the MSCI World ETF has become nervous on the verge of a new record high. This week it fell slightly on Wednesday, correcting slightly after previously rising significantly. The old record high dates back to December 27, 2021 - more than two years ago.

Investors who have the MSCI World ETF in their portfolio or have a savings plan running on it don't have to worry. After a good start to the year for many tech stocks and the major US indices, it is not unreasonable that the stock market will correct something. With the quarterly figures from Apple, Meta and Amazon this evening, things could look completely different again. These could turn the MSCI World around again. But even if things continue to go down: As can be seen in the chart, the ETF is still in a nice upward trend and also above the red trend line. So everything is fine here from a chart perspective. In addition, the 33 percent rally that we have been reporting on for a long time is still ongoing.

So at the moment everything is still fine. Of course you don't know, but there is still much to suggest that the MSCI World will soon set a new record high. Things can get a little bumpy along the way, but a savings plan helps to smooth out entry points and allow the investment to continue to grow overall. It is important to keep an eye on how the quarterly figures and performance of the mentioned tech stocks develop in the coming weeks, as these will have a significant impact on the MSCI World ETF. However, the general trend is positive and long-term investors should not be deterred by short-term fluctuations.