Quality Indexes

MSCI Quality Indexes are factor indexes designed to represent the performance of companies with durable business models and sustainable competitive advantages. As a “defensive” factor, quality has tended to benefit during economic contractions and has helped explain the movement of stocks with low leverage, stable earnings and high profitability.

Target benefits
Guage performance of competitive businesses

Measure with transparency and flexibility

Peer into quality strategies across geographies, sectors and market-cap sizes.

Identify durable return potential

Explore characteristics of low leverage, stable earnings and high profitability, particularly in flighty markets.

Discover diversification benefits

Assess quality through multiple fundamental measures, including profitability, earnings stability and balance sheet strength.

How we build our indexes

We select a subset of securities from the parent index with the highest quality scores — based on the fundamental variables of high return on equity, stable year-over-year earnings growth and low financial leverage.

 

Our indexes aim to reflect the performance of a quality growth strategy across geographies and markets, including the U.S., Japan, Europe and emerging markets, as well as for small-cap equities for the U.S.