MSCI World Index

Global equity benchmark covering large‑ and mid‑cap stocks from 23 developed‑market countries, capturing about 85 % of each local market’s free‑float capitalisation and giving investors a single, investible view of mature‑economy equity performance.

1. Snapshot (May 2025)

Metric	Value
Constituents	~1 480 stocks
Countries	23 developed markets
Total Market Cap	US $59 trillion
Dividend Yield	1.8 %
Currency	USD (local‑currency series also published)

2. Inclusion Rules

Rule	Detail
Market Classification	Developed‑market list (U.S., Japan, Germany, etc.)
Size Cut‑off	Top 85 % free‑float market cap (large + mid‑caps)
Liquidity Screen	12‑month turnover above MSCI thresholds
Free‑Float Adjustment	Strategic and government stakes excluded
Rebalance	Quarterly (Feb, May, Aug, Nov); full reviews each May & Nov

3. Regional & Sector Weights (April 2025)

Region	Weight*	Key Sectors
United States	69 %	Tech, Health Care
Europe ex‑UK	14 %	Industrials, Financials
Japan	6 %	Industrials, IT
Asia‑Pac ex‑Japan	6 %	Consumer, Materials
Canada	3 %	Energy, Banks
Sector Top Three	Information Technology 24 %, Financials 15 %, Health Care 12 %

*Float‑adjusted weights; largest single stock ≈ 5 %.

4. Recent Performance (USD)

Year	Total Return	Driver
2022	–17.7 %	Global rate shock
2023	+20.4 %	U.S. tech rebound
2024	+12.0 %	AI boom, resilient DM GDP
YTD 2025	+6.1 %	Fed pause, euro recovery

Five‑year annualised return: 9.2  %; volatility: 14.7  %.

5. Investor Use‑Cases

Global Core Beta – One ticker captures developed‑market equity performance.
Benchmarking – Active global funds measure alpha against this neutral yard‑stick.
ETF Access – Low‑cost trackers (URTH, IWDA, SWDA) replicate the basket.
Asset‑Allocation Models – CIOs employ MSCI World returns in capital‑market assumptions.

6. Strengths & Caveats

Strengths	Caveats
Broad DM coverage with 30‑year history	U.S. dominates weight (nearly 70  %)
Quarterly reviews keep universe fresh	No exposure to emerging markets or small caps
Free‑float factors improve investibility	Currency moves affect USD series; local version differs

7. Emerging Trends

ESG & Climate Versions – Net‑zero, SRI and Paris‑aligned variants gather assets.
Small‑Cap Inclusion – MSCI World + SMID index gaining traction for fuller coverage.
Digital Delivery – Tokenised index units under pilot for instant, 24/7 settlement.
Sector Evolution – AI hardware growth pushing semiconductor weight higher than legacy banks by 2026.

Key Takeaways

MSCI World Index rolls ~1 480 large‑ and mid‑cap stocks from 23 developed markets into a single benchmark.
U.S. tech leads weighting, giving the index high exposure to growth trends and rate moves.
It remains the default developed‑world gauge for ETFs, active‑fund benchmarking and strategic allocation models.

1. Snapshot (May 2025)