US Tech 125 Index

Broad Based

We start with the MSCI USA Index. This encompasses large- and mid-cap segments of the U.S. equity market. We then identify companies with high exposure to sub-themes, including the Internet, Mobility, Industrials and Health.

Next, we calculate ‘a security relevance score’ that reflects the proportion of revenue a company derives from businesses associated with these themes. To balance our objectives in terms of investability, liquidity and thematic exposure, our Index selects only the 125 U.S. company stocks that possess the most significant exposure to the technology theme.

Sector Agnostic

The MSCI US Tech 125 Index uses a sector-agnostic approach. We select stocks independent of a company's industry or sector classification. Instead, we rely on the precise estimation of a company's exposure to technology through a bottom-up process. For example, companies such as Netflix, a leading entertainment services company, and Abbot Laboratories, a medical devices and health care company, are both included in our Tech 125 Index.

Rules-Based Methodology

Companies are identified by a clear rules-based approach that is free from the constraints associated with targeting only traditional technology sectors. Rather than selecting companies by market capitalization, our Index identifies companies with the greatest exposure to the technology theme. This approach aims to have the Index represent the performance of companies across multiple sectors and themes, including the Internet, Mobility, Industrials and Health.

Using Professional Expertise

We seek insights from technology experts on the ongoing evolution of the theme underlying the tech index. The expert inputs help ensure that the indexes remain relevant as themes evolve.