It is maintained by MSCI Inc. (Morgan Stanley Capital International) and is one of the most widely used benchmarks for global equity markets.
Key Features of MSCI World Index
- Global Coverage – It includes stocks from 23 developed countries, such as the US, UK, Germany, France, Japan, Canada, and Australia.
- Market Representation – Covers approximately 85% of the total market capitalization in each country.
- Sector Diversification – Comprises stocks from a variety of sectors, making it a broad representation of the global economy.
- Excludes Emerging Markets – Unlike the MSCI All Country World Index (ACWI), the MSCI World Index does not include stocks from emerging markets like India, China, or Brazil.
Countries Included in the MSCI World Index
- United States
- Canada
- United Kingdom
- Germany
- France
- Japan
- Australia
- Switzerland
- Netherlands
- Sweden
- Others (total 23)
Composition & Weightage
- The United States typically holds the largest share (over 65%), followed by Japan, the UK, and other developed markets.
- Technology companies like Apple, Microsoft, and NVIDIA have significant weight in the index.
How It’s Used
- Benchmark for Global Investment Funds – Many mutual funds and ETFs track the MSCI World Index.
- Performance Indicator – Investors use it to gauge the health of the global equity market.
- Diversification Tool – Helps investors diversify their portfolios across multiple developed markets.
MSCI World Index vs. Other Indices
| Index | Coverage | Includes Emerging Markets? | Number of Stocks |
|---|---|---|---|
| MSCI World | Developed markets only | ❌ No | ~1,500 |
| MSCI ACWI | Developed + Emerging Markets | ✅ Yes | ~3,000 |
| S&P 500 | US Large-Cap Stocks | ❌ No | 500 |
MSCI World ETFs
To invest in the MSCI World Index, investors can buy ETFs like:
- iShares MSCI World ETF (URTH)
- Vanguard FTSE Developed Markets ETF (VEA)
- SPDR MSCI World UCITS ETF
Would you like more details on how to invest in it or how it has performed recently?
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