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 benefitsGuage 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.
Explore Quality IndexesView performance details, fact sheets and more
Quality index resources
Factor focus: quality
Learn more about the quality factor and its historical outperformance.
Quality time: understanding factor investing
Take a closer look at the evolution of our Quality Indexes and their methodology.
