While traditional capitalization weighted indices remain the most efficient tools for capturing market beta, investors are increasingly aware that there are additional sources of return associated with particular investment styles and strategies (including value, momentum, or volatility, for example). Alternatively weighted indices, such as the MSCI Value Weighted Indices, are designed to offer alternative beta exposures.

The MSCI Value Weighted Indices are based on a transparent methodology and can provide passive and cost-effective exposure to what value investors often refer to as the 'value premium' or the 'mispricing' of value stocks over time.

Each MSCI Value Weighted Index reweights the constituents of a standard MSCI parent index on four fundamental accounting variables: sales, earnings, cash earnings and book value. There is no security selection based on fundamental data; rather, the MSCI Value Weighted Indices include all constituents of the MSCI parent index, which helps maintain the equivalent trading liquidity, investment capacity and turnover characteristics of the parent index. The resultant index effectively tilts the MSCI parent index towards stocks with relatively lower valuations, hence displaying value characteristics.

Flagship MSCI Value Weighted Indices include: