MSCI Emerging Markets Indexes
In 1988, MSCI launched the first comprehensive emerging markets index. Since then, emerging markets have become an important and integrated part of a global equity portfolio allocation. In 1988, there were just 10 countries in the MSCI Emerging Markets Index, representing less than 1% of world market cap. Today the MSCI Emerging Markets Index covers over 800 securities across 23 markets and represents approximately 11%1 of world market cap.
In 2007, MSCI added small cap coverage of the Emerging Markets bringing the total number of securities covered in the MSCI Emerging Markets Investable Market Index (large + mid + small cap) to over 2,600. Numerous ETFs based on the MSCI Emerging Markets Index have been launched and are listed on major stock exchanges around the world.
MSCI regularly reviews the market classification of all countries included (or under consideration for inclusion) in its global equity universe based on extensive discussions with the investment community. Using the MSCI Market Classification Framework, MSCI examines each country’s economic development, size, liquidity and market accessibility in order to be classified in a given investment universe. Each June, MSCI communicates its conclusions on the list of countries under review and announces the new list of countries, if any, under review for potential market reclassification in the upcoming cycle.
Current Country Coverage
MSCI EM Beyond BRIC Index
The MSCI EM Beyond BRIC Index is designed to provide a broad measure of the performance of emerging market equities outside of the BRIC markets - Brazil, Russia, India and China. In addition, to provide greater country diversification, the weight of each single country is capped on a quarterly basis at 15%.
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MSCI EM Horizon Index
The MSCI EM Horizon Index is designed to reflect the performance of a selection of the smallest emerging markets by targeting 25% coverage of the MSCI Emerging Markets Index and excluding Brazil, China, India and Russia from the selected countries. Find out more.
MSCI China Indexes
The MSCI China Indexes target both international and domestic clients in the China market, including Qualified Domestic Institutional Investors (QDII) and Qualified Foreign Institutional Investors (QFII) licensees. Find out more.
MSCI Emerging Markets Index
The MSCI Emerging Markets Index captures large and mid cap representation across 23 Emerging Markets (EM) countries. With 822 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country. Find out more.
Barra Emerging Markets Model
Designed to identify unique sources of risk and return in over 80 emerging and frontier markets. Find out more.
1 Source: MSCI Research, as of October 2013