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MSCI EAFE Index
MSCI EAFE Index
The MSCI EAFE Index is designed to represent the performance of large and mid-cap securities across 21 developed markets, including countries in Europe, Australasia and the Far East, excluding the U.S. and Canada. The Index is available for a number of regions, market segments/sizes and covers approximately 85% of the free float-adjusted market capitalization in each of the 21 countries.
The Index is widely used as a benchmark and as the basis for index-linked financial products. Multiple exchange traded funds are based on the MSCI EAFE Index and the ICE Futures Europe, ICE Futures US and Chicago Board Options Exchange (CBOE) are licensed to list futures contracts on this Index.
MSCI eafe index market allocation
MSCI EAFE Index reflects the Modern Index Strategy
Evolves to measure and capture equity markets as they exist today. Our indexes are built using an innovative maintenance methodology that provides superior balance between the need for a stable index that is flexible enough to adjust quickly to a constantly changing opportunity set. We provide timely and consistent treatment of corporate events and synchronized rebalancings, globally.
Covers the full opportunity set and all its segments, including GICS® sectors. All of MSCI’s indexes are created using the Global Industry Classification Standard (GICS®), an industry classification system developed by MSCI and S&P Global, which provides a common framework to classify stocks. They offer exhaustive coverage of the investable opportunity set with non-overlapping size and style segmentation.
Consistent methodology for every market. Where other providers use either a long- or short-term liquidity measure to assess the eligibility of stocks for their indexes, MSCI uses both, recognizing the differences in liquidity between developed and emerging markets and enhancing the investability and replicability of our indexes. MSCI puts strong emphasis on investability and replicability of its indexes through the use of size and liquidity screens.
MSCI EAFE DAILY PERFORMANCE
A Building Block Approach
Our building block approach
MSCI EAFE Indexes offer a building block approach with a rules-based, consistent and transparent methodology.
Using MSCI EAFE as a framework to build portfolios helps to avoid unintended bets and risks.
Robust foundation allows investors to measure exposure to all sources of equity returns using a single global framework.