The MSCI Global Investable Market Indices Methodology details how each index size segment is defined within each country - not only to appropriately reflect the local market but also to achieve global integrity across all markets so that companies of comparable and relevant sizes are included in a given size segment in a composite index.

Defining size segments in a market

The investable equity universe for each market is derived by applying certain minimum requirements to all the securities in that market¹, such as minimum size, free float-adjusted capitalization, liquidity, and length of trading requirements. Once the investable equity universe for a market is defined, it is then segmented into size-based indices with target ranges.

• The MSCI Standard Indices cover all investable large and mid cap securities across the Developed, Emerging and Frontier Markets and target approximately 85% of each market's free-float adjusted market capitalization².
• The MSCI Mid Cap Indices cover all investable mid cap securities across the Developed, Emerging and Frontier Markets and target approximately 15% of each market's free-float adjusted market capitalization².
• The MSCI Investable Market Indices (IMI) cover all investable large, mid and small cap securities across the Developed, Emerging and Frontier Markets, targeting approximately 99% of each market's free-float adjusted market capitalization².
• The MSCI Small Cap Indices cover all investable small cap securities with a market capitalization below that of the companies in the MSCI Standard Indices, targeting approximately 14% of each market’s free-float adjusted market capitalization².
• The MSCI Micro Cap Indices cover approximately 5,000 micro cap securities across Developed Markets countries, using size and liquidity requirements specific to this size segment.

The MSCI IMI Indices are combined with the MSCI Micro Cap Indices to form the MSCI All Cap Indices across the Developed Markets countries.

[1]  A market is equivalent to a single country, except in the case of Developed Markets Europe, where all the Developed Markets countries in Europe are aggregated into a single market for constructing the MSCI Europe Index. Subsequently, individual Developed Markets Europe country indices are derived from the constituents of the MSCI Europe Index

[2]  Subject to minimum investability criteria and a universal minimum size range