MSCI World - August 2023
The MSCI World is a widely recognized and commonly used stock market index that represents the performance of large and mid-cap stocks from developed countries across the globe. MSCI, short for Morgan Stanley Capital International, is a leading provider of indices and investment analytics.
The MSCI World Index is designed to measure the equity market performance of companies in developed economies that meet specific criteria, including size, liquidity, and free-float market capitalization. It covers stocks from a broad range of sectors, such as technology, finance, healthcare, consumer goods, and more.
The constituents of the MSCI World Index are selected through a rules-based methodology. The index is weighted by the free-float market capitalization of each stock, meaning that larger companies with higher market values have a greater impact on the index's performance.
The MSCI World Index is widely used as a benchmark or reference point for investors and fund managers to gauge the performance of their global equity portfolios. It provides a comprehensive view of the performance of developed economies and allows investors to compare their investment returns against the index.
As an international index, the MSCI World captures stocks from various countries, including the United States, Canada, the United Kingdom, Japan, Germany, France, and others. However, it excludes stocks from emerging markets, focusing solely on developed economies.
Investors can track the performance of the MSCI World Index through financial information platforms, such as Bloomberg or financial news websites. Additionally, there are investment products, such as exchange-traded funds (ETFs) and mutual funds, that aim to replicate the performance of the MSCI World Index, providing investors with an opportunity to gain exposure to a diversified portfolio of global stocks.
It's worth noting that the MSCI World Index is periodically reviewed and adjusted to reflect changes in the stock market landscape, ensuring it remains representative of the evolving global equity market.