"In 2025, Communication Services Will Be on Top of the MSCI World Index."

Overview of 2025 Performance

The MSCI World Index, representing developed country stock markets, closed the year 2025 at 4,430.38, providing a notable return of 19.49%. During the same period, the S&P 500 Index also increased by 16.39%, reaching 6,845.50 points. These figures indicate that the MSCI World Index outperformed the S&P 500 in 2025.

Sector-Based Changes

Out of the 11 sector indices within the MSCI World Index, 5 lagged behind both the main index and the performance of the S&P 500, while 6 sector indices posted gains above both indices. The communication services sector emerged as the highest-gaining sector with a growth of 30.94%. Finance increased by 26.06%, consumer goods by 23.38%, industrials by 23.36%, information technology by 22.95%, and utilities by 21.69%.

Index Weight Distribution

The sector weights of the MSCI World Index are noteworthy. As of December 31, 2025, the information technology sector held the largest share at 27.0%, followed by finance at 17%, industrials at 11%, and consumer discretionary at 10%. Among the companies with the largest shares during this period, Nvidia led at 5.47%, followed by Apple at 4.87%, and Microsoft at 4.12%. All of the top 10 companies are based in the U.S.

Country Distribution and the Role of the U.S.

The country distribution of the MSCI World Index shows that the U.S. holds the highest share at 71.9%. This is followed by Japan at 5.5%, the United Kingdom at 3.7%, and Canada at 3.4%. This heavy U.S. influence causes the index's performance to respond quickly to developments in this country's stocks.

Global Economic Developments

As we enter 2026, factors likely to affect the index's trajectory include the trend of U.S. inflation, the global growth outlook, monetary policies of major central banks, and the profit margins of technology companies. Thus, investors will be better positioned to track the general trends in developed markets.