World ESG Reduced Carbon Select 20 35 Capped Indexes Intro
Over the last several years, investors around the world have chosen to incorporate their ESG preferences, goals or regulatory requirements into their investment strategy. ESG integration began with core equity regional portfolio building blocks, then extended to fixed income. It too has evolved to encompass the entire asset allocation process, including sector portfolios and indexed funds.
The MSCI World ESG Reduced Carbon Select 20 35 Capped Indexes are designed to support investors that seek to increase exposure to positive environmental, social and governance (ESG) factors and aim to reduce the carbon-equivalent exposure to carbon dioxide (CO2) and other greenhouse gases (GHG), as well as to lower their exposure to potential emissions risk of fossil fuel reserves relative to the respective sector parent indexes.
Our range of Indexes
Our range of Indexes - factsheets and methodologies
World ESG Reduced Carbon Select 20 35 Capped Indexes Featured
Changing Sectors, Changing Correlations
When considering new sector exposures in their portfolios, investors can review correlations between existing and potential allocations to better understand whether these sectors’ returns moved in the same direction or if exhibited a differentiated return pattern. The correlation measure ranges from -1 to +1; the closer it is to +1, the more correlated the investments being measured.
Sector Leaderboard Changed as Inflation Picked Up
U.S. Fed Chairman, Jerome Powell, has made it official: We can no longer label the period of current inflation as transitory. The Fed left interest rates unchanged in January, and Chairman counselled patience about next steps.
Have Sectors Driven Stock Returns?
When investors construct portfolios, they may do so based purely on bottom-up stock selection, or they may incorporate an element of top-down construction by adjusting the portfolio’s allocation to sectors, countries or factors.