MSCI Market ClassificationAssessing and categorizing equity markets according to common characteristics.
MSCI Market Classification Framework
MSCI evaluates equity markets around the world each year to determine whether they should be classified as a developed, emerging, frontier or standalone market. This review is critical to how we construct our equity market indexes. We consider the views and practices of the international investment community and assess a market’s economic development, accessibility and investability.
The MSCI Market Classification Framework uses three criteria to evaluate markets:
Considers economic development sustainability; only used to determine classification of developed markets
Determines those securities that meet the minimum investability requirements of the MSCI Global Standard Indexes
Aims to reflect international institutional investing experiences in a given equity market based on five market accessibility criteria
As part of the annual market classification review, MSCI communicates the list and analysis of equity markets under each category (Developed, Emerging, Frontier and Standalone), as well as the markets, if any, under review for potential market reclassification in the upcoming cycle.
Why does a market classification matter?
A market classification is a key input in index construction. By grouping markets according to common characteristics, we are helping investors better understand and compare different markets.
In addition, MSCI’s Market Classification includes a Market Accessibility review which seeks to reflect investors’ real-life experience in accessing and transacting in each market, in addition to a detailed and thorough analysis of existing regulatory frameworks.
The Annual Market Classification Review is designed to ensure that MSCI indexes accurately group the equity markets they measure to allow investors to compare markets and appropriately aggregate markets into regions and other combinations. We also aim to provide ample notice to investors and markets of potential changes to minimize impact.
Every June, MSCI first announces the results of the Annual Market Accessibility Review which covers all markets within our investable universe. Shortly after, MSCI announces the results of the Annual Market Classification Review.
Current Market Classification
The table below reflects the current Market Classification. Please refer to the latest Annual Market Classification Review for details.
The MSCI’s Standalone Markets are broadly classified into two groups:
Newly eligible markets may either be new markets, previously not covered by MSCI or markets that were closed to a specific group(s) of investors.
A reclassification to a Standalone status may occur in the case of severe deterioration in market accessibility or size and liquidity.
Featured content
Research and Insights
Our investing insights explore the topics that matter most, whether on climate and ESG, current market trends or global investing and risk management across asset classes.
Indexes
From foundational broad market to customized outcome indexes, our time-tested, globally consistent solutions power indexed strategies and products for investors.
Interested in learning more from MSCI?
Global Investable Market Indexes Methodology
Our Global Investable Market Indexes (GIMI) methodology governs the construction of the majority of our market cap indexes.
Index Announcements
In this section, investors can access announcements that pertain to MSCI indexes, including Market Cap Indexes.
1 The MSCI Standalone Market Indexes are not included in the MSCI Emerging Markets Index or MSCI Frontier Markets Index. However, these indexes use either the Emerging Markets or the Frontier Markets methodological criteria concerning size and liquidity.
2 EMEA – Europe, Middle East, and Africa
3 APAC – Asia Pacific
* The West African Economic and Monetary Union (WAEMU) consists of the following countries: Benin, Burkina Faso, Guinea-Bissau, Ivory Coast, Mali, Niger, Senegal, and Togo. Currently the MSCI WAEMU Indexes include only securities classified in Benin, Burkina Faso, Ivory Coast, Niger and Senegal.