MSCI World
| Company type | Public |
|---|---|
| Industry | Financial services |
| Founded | 1969 |
| Products | Stock market indices, investment decision support tools |
| Website | www |
The MSCI World index is a widely recognized global stock market index that tracks approximately 1,300 large and mid-cap firms spanning 23 developed nations. Managed by MSCI, previously known as Morgan Stanley Capital International, it functions as a crucial benchmark for global stock funds focused on developed markets.
This index encompasses equities exclusively from MSCI-defined developed countries, deliberately excluding emerging and frontier markets, which limits its worldwide coverage despite the broad implication of its name. In contrast, the MSCI All Country World Index (ACWI) includes emerging economies, while MSCI’s Frontier Markets index covers an additional 31 frontier economies.
Since its launch in 1969, the MSCI World Index has been available in several formats: Price Index (which omits dividends), Net and Gross Total Return versions (which incorporate dividends), and is expressed in US dollars, Euros, and local currencies.
Index Composition Methodology
The MSCI World Index segments stocks from developed markets into large-cap and mid-cap categories based on free float-adjusted market capitalization.
Market capitalization represents a company's total value by multiplying its share price by the number of outstanding shares. MSCI modifies this figure by considering only the free float shares—those publicly tradable—excluding shares held by insiders or governments unlikely to sell.
Within each developed country, companies are ranked according to their free float-adjusted market capitalization and selected as follows:
- Large-cap stocks: approximately the top 70% of cumulative market cap
- Mid-cap stocks: extending coverage up to roughly 85%
The smallest 15%, classified as low-cap stocks, are omitted. This selection process ensures that the MSCI World Index reflects about 85% of the investable equity market per country, providing comprehensive exposure to developed market equities.
Market Classification Methodology
A country's equity market is designated as "developed" by MSCI only if it satisfies all of the following requirements:[1]
| Criterion | Threshold (June 2025 framework) | Purpose |
| Economic development | Gross National Income (GNI) per capita at or above 125% of the World Bank’s high-income benchmark
(i.e., ≥ USD 17,506 based on the USD 14,005 2023 standard) sustained for three consecutive years |
Confirms consistent high-income status |
| Size & liquidity
(entry requirement) |
At least five companies meeting each of these criteria during each of the last eight index reviews:
|
Ensures adequate investable market depth |
| Size & liquidity (maintenance requirement) | At least one company must maintain size-and-liquidity thresholds after inclusion, with a minimum of five securities remaining in the investable equity universe | Maintains index consistency |
| Market accessibility | Achieves ratings of "Very High" or "Unrestricted" across five factors: openness to foreign ownership, freedom of capital flows, operational efficiency, unrestricted investment vehicles, and institutional stability | Assures smooth access for international investors |
MSCI performs ongoing monitoring of markets with formal reclassification reviews each spring; outcomes are announced in June and applied quarterly. Exceptional circumstances may prompt off-cycle adjustments.
Country representation
This index includes firms from the following 23 nations:
- Australia
- Austria
- Belgium
- Canada
- Denmark
- Finland
- France
- Germany
- Hong Kong
- Ireland
- Israel
- Italy
- Japan
- Netherlands
- New Zealand
- Norway
- Portugal
- Singapore
- Spain
- Sweden
- Switzerland
- United Kingdom
- United States
Sector representation
Utilizing the Global Industry Classification Standard (GICS), companies within the index are organized by sector. As of July 2025, the information technology sector accounts for more than 26% of the total index composition.
Total annual returns
| Year | Gross Annual Return (a) |
|---|---|
| 1970 | −1.98% |
| 1971 | 19.56% |
| 1972 | 23.55% |
| 1973 | −14.51% |
| 1974 | −24.48% |
| 1975 | 34.50% |
| 1976 | 14.71% |
| 1977 | 5.00% |
| 1978 | 18.22% |
| 1979 | 12.67% |
| 1980 | 27.72% |
| 1981 | −3.30% |
| 1982 | 11.27% |
| 1983 | 23.28% |
| 1984 | 5.77% |
| 1985 | 41.77% |
| 1986 | 42.80% |
| 1987 | 16.76% |
| 1988 | 23.95% |
| 1989 | 17.19% |
| 1990 | −16.52% |
| 1991 | 18.97% |
| 1992 | −4.66% |
| 1993 | 23.13% |
| 1994 | 5.58% |
| 1995 | 21.32% |
| 1996 | 14.00% |
| 1997 | 16.23% |
| 1998 | 24.80% |
| 1999 | 25.34% |
| 2000 | −12.92% |
| 2001 | −16.52% |
| 2002 | −19.54% |
| 2003 | 33.76% |
| 2004 | 15.25% |
| 2005 | 10.02% |
| 2006 | 20.65% |
| 2007 | 9.57% |
| 2008 | −40.33% |
| 2009 | 30.79% |
| 2010 | 12.34% |
| 2011 | −5.02% |
| 2012 | 16.54% |
| 2013 | 27.37% |
| 2014 | 5.50% |
| 2015 | −0.32% |
| 2016 | 8.15% |
| 2017 | 23.07% |
| 2018 | −8.20% |
| 2019 | 28.40% |
| 2020 | 16.50% |
| 2021 | 22.35% |
| 2022 | −17.73% |
| 2023 | 24.42% |
| 2024 | 19.19% |
- (a) Returns represent total gains including dividends that have been reinvested.
See also
- FTSE Global Equity Index Series (FTSE All-World Index)
- Exchange-traded fund
- MSCI EAFE
- S&P Global 1200
- Stock market index
- ↑ MSCI Market Classification Framework, June 2025