What is US Tech 125 Index?

What is US Tech 125 Index?

The last decade has seen huge technological innovation in the U.S. Artificial intelligence (AI), the Internet of Things (IoT) and other emerging technologies that are unlocking the power of innovation to create new business and investment opportunities.

But how can investors benefit from these innovative new solutions?

MSCI’s new US Tech 125 Index can help. It can provide a new framework to help investors better understand the growing number of U.S. companies driven by technological innovation.


Why US Tech 125 Index?

Why US Tech 125 Index?

Discover how our new U.S. Tech 125 Index can help you identify and better understand companies that are part of the technology revolution:

  • Unlike traditional tech index approaches, the MSCI US Tech 125 Index seeks to represent the performance of companies that enjoy first-mover advantage by leveraging technology
  • This new index prioritizes companies that have significant exposure to the Tech theme
  • These companies consist of technology-focused businesses that might be captured in standard technology focused indexes

Thematic Approach to Technology

We break down our themes into four buckets: Internet; Mobility; Industrials; and Health:

Technology-Driven Companies


TECHNOLOGY-DRIVEN COMPANIES

Internet

  • Blockchain & Peer-to-peer (P2P)
  • Cloud Computing
  • Crowdsourcing
  • Cybersecurity
  • E-commerce
  • Fintech
  • Internet of Things
  • Mobile & Digital Payments
  • Robotics and Artificial Intelligence
  • Social Media

Mobility

  • Batteries
  • High speed transportation
  • Sharing Economy
  • Smart Mobility
  • Vehicular Automation

Industrials

  • 3D Printing
  • Alternate Energy Sources
  • Innovative Materials
  • Smart Infrastructure
  • Space Exploration

Health

  • Agricultural Biology
  • Automated Diagnostics
  • Bioinformatics
  • Clinical Lab Automation
  • Gene Editing
  • Gene Therapy
  • Healthcare Infotech
  • Medical Device/Instruments/Materials
  • Molecular Diagnostics
  • Stem Cells
  • Telemedicine
  • Targeted Therapeutics

How is the US Tech 125 Index constructed?

How is the US Tech 125 Index Constructed?

Broad based

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

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

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.

Tech Expert

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.


US Tech 125 Index Offering

US Tech 125 Index Offering

The MSCI US Tech 125 Index aims to represent the performance of companies at the forefront of technology-driven transformation. Our scalable, differentiated, multi-sector approach provides you with a new and valuable tool to make better investment decisions.

The US Tech 125 Index aims to represent the performance of U.S. companies that are expected to derive significant revenue from the development of new products and services from technology innovations and breakthroughs in areas of internet and digitization, mobility, autonomous technology and industrial automation and digital healthcare.


Featured Content

 

Featured Content


US Spotlight: Future Mobility

US Spotlight: Future Mobility

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US Spotlight: Digital Transformation and Disruption

US Spotlight: Digital Transformation and Disruption

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US Tech 125 Index Contact Us

 

Request your US Tech 125 Information Pack

For more information about MSCI US Tech 125 Index.

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