Noting the parallel between today’s technology- and AI-driven concentrated rally and the late 1990s’ technology boom, we examined factor performance and factors’ over- and underweights in the top 10 MSCI USA Index constituents over both periods. 

As part of MSCI’s May 2023 index review, effective June 1, the MSCI USA Momentum Index will on average rebalance out of value and into many growth stocks, including some firms with an AI presence — reversing the 2022 trend away from tech. 

We review the drivers of performance for ESG and climate indexes over the first quarter of 2023, and investigate the explanatory power of the carbon-efficiency factor over time. 

Broad market-cap weighted indexes might not fully assess climate-objective alignment. We believe that an appropriate parallel benchmark could help illustrate this alignment, improve transparency and allow investors to make more informed decisions.

Leading up to and including Nov. 8, Americans will vote for 35 Senate and all 435 of the voting House seats.

We provide a primer of the MSCI COLCAP Index, which has information to help investors if they seek to diversify in Latin America. The index aims to reflect the Colombian equity market while balancing diversification, investability and replicability.

The Russian invasion of Ukraine is another reminder that geopolitics play an outsized role in determining economic relations between countries.

How is Latin America different from other emerging markets? We analyze the influence of foreign direct investment; market performance; exposure to sectors and thematic investments; ESG and climate risks and opportunities and corporate-ownership structures. 

Having a better understanding of the ownership structure of a firm and the various ownership control groups that may exist, can help international investors assess how loud their voices will be when the firm’s strategy and direction is being decided.

Inflation watchers, aware of how COVID-19 led to trillions of dollars of stimulus, may want to note the longer-term shift toward deglobalization. As these forces collide, they may lead to rising global inflation and affect asset-allocation strategies.

Although, on average, emerging-market (EM) companies have tended to have lower MSCI ESG Ratings than global peers, a more granular regional analysis can provide additional insights.

The drivers of Latin America’s economies have significantly changed over the past two decades, as we can see clearly by looking at the sector composition of the Latin American stock market.  

In our previous post, we analyzed the performance of the MSCI EM Latin America Investable Market Index (IMI) relative to other emerging-market regions. Here, we investigate what drove this performance.

Latin American stock markets have recovered strongly as the world starts to overcome some of the COVID-19 pandemic’s challenges — renewing interest in the region.