msci index

What is MSCI Index – Definition

MSCI Index Definition: The MSCI index is a set of indices created by MSCI, which stands for Morgan Stanley Capital International. This American group evaluates the performance of stock markets in developed countries. It publishes, among other things, stock market indices. MSCI World and MSCI EAFE.

• Moreover, it is measured on the basis of the state of the stock markets of countries enjoying economic stability. That said, the MSCI index is not a unique index. It brings together the most popular indices worldwide. To be exact, the MSCI index includes the capitalization of 23 countries in the developed stock markets. It also has more than 1600 constituents and covers 85% of the adjusted market capitalization in developed countries.
• Half of these capitalizations are however held by American companies. British companies also hold a quarter of these capitalizations and European companies only 1/10^rd. These companies are mostly in the information technology, healthcare, finance, and other mainstream fields.
• To invest in this index, you must use ETFs that are accessible on online trading platforms. Discover the best ETFs World at DEGIRO who offer very attractive brokerage fees.

Synonym MSCI Index

• MSCI World
• Morgan Stanley Capital International Index
• Morgan Stanley Capital International Index
• MSCI Global
• MSCI World Index

Etymology MSCI Index

The term “MSCI Index” is made up of the terms “index” and “MSCI”. Index means an indicator which aims to define the performance of a stock market. MSCI is short for Morgan Stanley International.

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Terms or Vocabulary Related to the Morgan Stanley Capital International Index

Total Price Return Definition: The total price return index, or overall return index, is a stock market index that tracks capital gains. This includes various distributions, such as dividends or interest, allocated to the index's components. Checking this overall return index is a good way for shareholders to assess the index's performance.

ETF Definition: ETF or Tracker means an index fund or basket of values ​​that can be traded on an exchange. The ETF has the particularity of reconstituting the evolution of a stock market index such as the MSCI World, whether upwards or downwards.

Small Cap Definition: Small cap, or small capitalisation, refers to a listed company with a particularly low share price. A company with a large number of shares outstanding has a high market capitalization. Conversely, a company with few shares outstanding has a low market capitalization.

MSCI Frontier Markets Definition: The MSCI Frontier Markets index refers to the MSCI index of stock markets in developing countries. This includes certain countries in Asia, the Middle East, Africa, South America, and Europe.

ACWI Index Definition: The ACWI, or All Country World Index, is MSCI's flagship global equity index. It tracks the performance of small- and large-cap stocks in 23 developed and 26 emerging markets and includes over 3000 stocks.

CFD Definition: CFD or contracts for difference is a derivative product that takes the form of a contract involving a seller and a buyer. This provides that the difference resulting from the value of an underlying sold and at the time of signing the contract will be credited or debited from a buyer's account.

What is the MSCI EAFE Index – Definition

The MSCI EAFE Index is a stock market index offered by MSCI. In general, this index covers non-US and Canadian stock markets. It constitutes a reference index for evaluating the performance of the main international stock markets. Concretely, this represents 21 MSCI indices from Europe, Australasia and the Middle East.

This index, developed by the Morgan Stanley Capital International financial institute, was created in 1969. However, the MSCI EAFE holds the role of the oldest international stock market index. Moreover, it can also be simply called the EAFE index.

What is the MSCI EMU?

The MSCI EMU index is an equity index based on market capitalization launched by the MSCI in the late 90s. Its objective is to measure the performance of the equity markets of the member countries of the euro zone. This index is heavily weighted in holdings from France, Germany and the Netherlands. This is the Eurozone equity index that rates mid- and large-cap companies. Specifically, it concerns 10 developed markets of the European Economic and Monetary Union (EMU).

In addition, nearly 85% of EMU's float-adjusted market capitalization is covered by this index. To invest in this index, it is possible to do so using an ETF.

Questions about this definition? Do not hesitate to ask us in the comments!