MSCIindices

MSCI indices are a family of equity, fixed income, and multi-asset benchmarks developed by MSCI Inc. They are widely used by asset managers, pension funds, and hedge funds as performance benchmarks and as the basis for index-linked products. The index family includes broad market benchmarks such as the MSCI World (developed markets), the MSCI All Country World Index (ACWI, developed and emerging markets), and regional or country-specific indices such as MSCI Europe, MSCI United States, and MSCI Emerging Markets. In addition to cap-weighted benchmarks, MSCI also offers factor, sector, minimum-volatility, and ESG/climate indices.

Construction methodology for MSCI indices generally relies on free float-adjusted market capitalization weighting and is designed to represent investable segments of the market. The universe is screened for liquidity and investability; constituents are rebalanced on a regular schedule (quarterly reconstitution for most broad indices) with changes announced in advance. The methodology is proprietary, with public documentation outlining definitions and treatment of events such as spin-offs, mergers, and foreign ownership limits. The index families include broad-market indices, regional and country indices, sector indices, factor/style indices (Value, Growth, Quality, Momentum, Size, Low Volatility), and ESG/Climate variants.

Usage and licensing: MSCI indices underpin a wide range of passive and active strategies, including index funds, exchange-traded funds, and index futures and options. Many financial products track MSCI benchmarks, and licensing fees apply to the use of the index data and brand. MSCI also provides ESG and responsible investment indices, with scores and screens that integrate environmental, social, and governance metrics. Changes to MSCI indices can affect fund performance and portfolio construction, making index maintenance a critical factor for investors.