As middle-power alliances take shape and tariff negotiations intensify, investors may reasonably wonder how this could impact their global portfolios. The starting point is to ask what those portfolios actually hold, and the answer might surprise most people.
The two largest American companies by market capitalization, Nvidia and Apple, outweigh three of America's most important allies in their representation on the MSCI World Index, and the top ten holdings, all American, comprise 25.74% of the entire index. Indeed, Nvidia and Apple carry a combined 9.95% weight in the MSCI World Index, an index designed to represent a picture of the developed world. 204 index constituents are domiciled in Canada, the United Kingdom and France, equaling 9.19% together.
The United States produces roughly a quarter of global GDP yet represents 72.45% of the MSCI World Index. Typically, when an investment policy statement defines the opportunity set as US and International for American portfolios; tracking error tethers the manager to that binary, policy benchmarks are revisited every three to five years, and target date funds are hardcoded for tens of millions of households. The world is going multipolar, as investors seek to add a wider range of countries and economic regions to their portfolios.
At V-Square, we advocate for knowing your benchmark. We believe that this is the answer to understanding what a global allocation actually holds. If following a world mandate means investment in ~72% US constituents, investors should understand that this concentration is a bet on the unipolar world persisting. Know your benchmark before it surprises you.
Source: MSCI World Index factsheet, June 30, 2026. Constituent counts: MSCI UK Index (66), MSCI France Index (55) and MSCI Canada Index (83) as of June 30, 2026.
This chart is for illustrative purposes only. Other indexes are available. It is not possible to invest directly in an index. Index returns do not reflect any management fees, transaction costs or expenses. Past performance does not guarantee future performance. The information and opinions contained herein are for informational purposes only, do not purport to be full or complete, do not constitute investment advice and may not be relied on. For more information, please see vsqm.com/disclaimer.
