USA IMI Innovation Select Index Intro

What is MSCI USA IMI Innovation Select Index?

The MSCI USA IMI Innovation Select Index aims to represent the performance of a set of US listed companies that are associated with the development of new products and services in a broad range of innovation areas ranging from artificial intelligence, industrial automation, DNA sequencing, energy storage, to digital payments, Cloud Computing and blockchain technologies.

The Index is constructed from four MSCI Thematic Indexes, developed in collaboration with ARK Invest:

  • MSCI ACWI IMI Autonomous Technology & Industrial Innovation Index
  • MSCI ACWI IMI Genomic Innovation Index
  • MSCI ACWI IMI Fintech Innovation Index
  • MSCI ACWI IMI Next Generation Internet Innovation Index

The index aims to provide focused exposure to each of the four themes by selecting stocks with high relevance scores.

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Why MSCI USA IMI Innovation Select Index?

Why MSCI USA IMI Innovation Select Index?

The MSCI USA IMI Innovation Select Index is fully rules based. It combines MSCI’s robust thematic index framework with additional insights from ARK invest, a fellow expert in thematic investing, to deliver exposure to game changing new technologies across the globe. By selecting stocks with high relevance scores within each theme, the index captures the most representative companies, likely to benefit from long term structural trends in the areas of autonomous technology, genomics, fintech, and next generation internet.


How is the MSCI USA IMI Innovation Select Index constructed?  

How is the MSCI USA IMI Innovation Select Index constructed?  

The MSCI USA IMI Innovation Select Index is constructed from four MSCI Thematic Indexes (Component indexes):

  • MSCI ACWI IMI Autonomous Technology & Industrial Innovation Index
  • MSCI ACWI IMI Genomic Innovation Index
  • MSCI ACWI IMI Fintech Innovation Index
  • MSCI ACWI IMI Next Generation Internet Innovation Index

From each of the above indexes, stocks are selected that satisfy the three conditions below:

  1. Relevance score >=75%
  2. US Listed Companies
  3. 3-Month Average Daily Trading Volume >=$20M

Out of those stocks, the top 15 in each component index based on Float Adjusted Market Cap Weight in the parent index are selected.

The weights of the final names are then normalized to sum to 100%.

 

 


MSCI USA IMI Innovation Select Index offerings

MSCI USA IMI Innovation Select Index Offerings

MSCI has developed three versions of the index- a standard, a 3% decrement and 5% decrements. The decrement indexes have been constructed by deducting a fixed percentage from the gross total return of the MSCI USA IMI Innovation Select Index on a daily basis.


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