MSCI US REIT Custom Capped Index

The MSCI US REIT Custom Capped Index is designed to measure the performance of the large, mid and small-cap segments of the US equity Real Estate Investment Trusts (REITs) market. The MSCI US REIT Custom Capped Index uses a variation of MSCI 25/50 Indexes methodology, where the weight of any single group entity will be constrained at 22.5% of the Index weight, and the sum of the weights of all group entities representing more than 4.75% weight will be constrained at 24% of the Index weight. All the securities are classified under the Equity REITs Industry (under the Real Estate Sector) according to the Global Industry Classification Standard (GICS®), have core real estate exposure (i.e., only selected Specialized REITs are eligible) and carry REIT tax status.

The index includes equity REIT sub-industries which are part of the real estate sector according to the Global Industry Classification Standard (GICS ®) structure. To be eligible for inclusion in the index, companies must have an equity REIT structure, real estate exposure and REIT tax status as per the Internal Revenue Code requirements mentioned above. As a result, select specialized REITs that do not meet these criteria are excluded from the index.

Launched in September 2020, the index is currently built from the MSCI USA Investable Market Index (IMI), which aims to represent the performance of large, mid and small caps securities. The MSCI USA Investable Market Index is governed by the MSCI Global Investable Market Indexes methodology.