MSCI Equal Weighted Indexes
The MSCI Equal Weighted Indexes offer an alternative to market capitalization weighted indexes. Equal weighting is a simple idea – an investor holds the same dollar value in each stock, representing an equal part of the value of the portfolio. Equally-weighted indexes are some of the oldest and best-known factor strategies that have aimed to identify specific characteristics of stocks generating excess return.
Simply put, MSCI Equal Weighted Indexes avoid concentrating too much of the portfolio into a few large stocks. The result: over the December 2000 to mid-2015 period, equal-weighted versions of MSCI flagship indexes, such as the MSCI USA Equal Weighted Index, delivered significantly higher returns than their cap weighted counterparts.