TheMSCI World is a widely followed globalstock market index that tracks the performance of around 1,300 large and mid-cap companies across 23 developed countries.[1][2] It is maintained byMSCI, formerly Morgan Stanley Capital International, and is used as a common benchmark for globalstock funds intended to represent a broad cross-section of global markets.[citation needed]
The index includes a collection ofstocks of all thedeveloped markets in the world, as defined by MSCI. The exclusion of stocks from emerging and frontier economies makes the index narrower in global coverage than the name suggests.[clarification needed] A related index, the MSCI All Country World Index (ACWI), incorporates both developed and emerging countries. MSCI also produces a Frontier Markets index, including another 31 markets.[3]
The MSCI World Index has been calculated since 1969,[4] in various forms: withoutdividends (Price Index), with net or with gross dividends reinvested (Net and Gross Index), inUS dollars,Euro and local currencies.
The MSCI World Index is constructed by classifyingequity securities from countries withdeveloped markets into large-cap and mid-cap segments based on their free float-adjusted market capitalization.
Market capitalization refers to the total market value of a company's outstanding shares, calculated as the share price multiplied by the total number of shares. In MSCI's methodology, this figure is adjusted to include only thepublic float[why?]: meaning only shares readily available for public trading (also known as the "free float") are counted, excluding those held byinsiders, governments, or other holders who are unlikely to trade.
Within each developed market country, MSCI ranks companies by their free float-adjusted market capitalization and includes:
The MSCI index excludes the remaining 15% of market capitalization segment, corresponding to low-cap stocks.
This segmentation ensures that the MSCI World Index captures 85% of the investable equity universe in each country, providing broad coverage ofdeveloped market equities.
MSCI evaluates a country's equity market as "developed" if all of the following criteria are met:[5][6]
| Criterion | Threshold (June 2025 framework) | Purpose |
| Economic development | Gross National Income (GNI) per capita ≥ 125 % of the World Bank high-income threshold (i.e., ≥ USD $17,506 based on the USD $14,005 2023 benchmark) for three consecutive years | Demonstrates sustained high income level |
| Size & liquidity (entryrequirement) | ≥ 5 companies that, in each of the last eight index reviews, individually satisfy:
| Ensures a sufficiently deep investable universe |
| Size & liquidity (maintenancerequirement) | Even after inclusion, ≥ 1 company must continue to meet the above size-and-liquidity figures, and the market must retain ≥ 5 securities in its investable equity universe | Preserves index stability |
| Market accessibility | Rated "Very High" or "Unrestricted" across the five sub-criteria:
| Guarantees seamless access for global investors |
MSCI monitors all countries continuously, but formal reclassification consultations occur each spring, with decisions announced the following June and implemented in quarterly index reviews. Off-cycle announcements are reserved for exceptional market events.
The index includes companiesdomiciled in the following 23 countries[citation needed]:
Companies are divided into sectors using theGlobal Industry Classification Standard. The aggregate distribution of companies that comprise the index is shown here in the pie chart, with information technology being the biggest sector with more than 26% as of July 2025.[1]
| Year | Gross Annual Return (a)[citation needed][7] |
|---|---|
| 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% |
| 2025 | 21.60% |