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MSCI equal weighted indexes

MSCI equal weighted indexes

The MSCI equal weighted indexes offer an alternative to market capitalization weighted indexes. Equal weighting is a simple idea – an investor holds the same dollar value in each stock, representing an equal part of the value of the portfolio. Equally-weighted indexes are some of the oldest and best-known factor strategies that have aimed to identify specific characteristics of stocks generating excess return.

Simply put, MSCI equal weighted indexes avoid concentrating too much of the portfolio into a few large stocks. The result: over the December 2000 to mid-2015 period, equal-weighted versions of MSCI flagship indexes, such as the MSCI USA Equal Weighted Index, delivered significantly higher returns than their cap weighted counterparts.


PERFORMANCE, FACTSHEETS AND METHODOLOGY

ADDITIONAL INSIGHTS AND RESEARCH

Research insight

Research insight

Demystifying Equal Weighting – Jun 2012
The idea of accessing risk premia through the use of index-based funds and ETFs has been gaining momentum in recent years.

Factsheet

Factsheet

The MSCI USA Equal Weighted Index represents an alternative weighting scheme to its market cap weighted parent index, the MSCI USA Index.

Methodology

Methodology

This document describes the methodology that MSCI uses to calculate the MSCI Equal Weighted Indexes by applying equal weights to the constituents of the corresponding free float-adjusted market capitalization weighted MSCI global equity indexes (herein, “Parent Indexes”).

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