Market Concentration and the Global Index Opportunity Set
Mentioned in this paper:
Preview
Global megacap concentration is persisting. Does this change the global indexing challenge with its core trade-off between global size integrity and individual market breadth and coverage?
This paper explores four key dimensions of the MSCI Global Investable Market Indexes methodology to see how index characteristics vary as the well-established rules are flexed: from different ways to measure size integrity to the effect of developed and emerging markets. We assess each scenario independently across liquidity, turnover, coverage and potential transition cost, analyzing historical simulations as well as future resilience.
Each hypothetical has its drawbacks — constituent increase versus U.S. coverage over-shoot, investor transition costs and lower liquidity, or EM representation versus global size consistency. We assess them all through the size-integrity principle that has anchored MSCI’s GIMITM methodology for nearly 20 years.
Read the full paper
Provide your information for instant access to our research papers.
Global Equity Investing Through the Decades
Future index innovations emerge from past experience. Within the context of 55 years as a global index provider, we review major global-equity trends via a series of charts and offer deeper insight into the role of index-construction parameters.
How Megacap IPOs in 2026 Could Reshape Global Benchmarks
Potential megacap IPOs in 2026 could reshape global benchmarks — increasing U.S. weight, shifting sectors toward software and aerospace and triggering billions in index flows.
MSCI Market Cap Indexes
MSCI Market Cap Indexes include large-, mid- and small-cap indexes designed to represent and measure global equity markets as they evolve.
The content of this page is for informational purposes only and is intended for institutional professionals with the analytical resources and tools necessary to interpret any performance information. Nothing herein is intended to recommend any product, tool or service. For all references to laws, rules or regulations, please note that the information is provided “as is” and does not constitute legal advice or any binding interpretation. Any approach to comply with regulatory or policy initiatives should be discussed with your own legal counsel and/or the relevant competent authority, as needed.