MSCI Equity Indexes November 2024 Index Review

Rhea-AI Summary

MSCI Inc. announced the results of its November 2024 Index Review for MSCI Equity Indexes, with changes effective November 25, 2024. Key changes include: 22 additions and 57 deletions from the MSCI ACWI Index. Notable additions to the World Index include Spotify Technology, Carvana A, and Cvc Capital. The Emerging Markets Index will add International Games System Co, Kalyan Jewellers India, and Oberoi Realty. The ACWI Small Cap Index will see 141 additions and 219 deletions, while the Frontier Markets Index will have 4 additions and 5 deletions.

Positive

• Major index rebalancing affecting multiple global markets
• Addition of significant companies like Spotify Technology to World Index
• Expansion of Emerging Markets Index with new additions

Negative

• Net reduction in MSCI ACWI Index with 57 deletions vs 22 additions
• Net reduction in ACWI Small Cap Index with 219 deletions vs 141 additions
• Continued suspension of changes for Bangladesh securities due to market accessibility issues

Insights

Market Research Analyst

This periodic index review, while routine, reveals notable shifts in global market representation. The significant imbalance between additions and deletions (22 additions vs. 57 deletions in the MSCI ACWI Index) signals a tightening of index inclusion criteria and potential market value adjustments. The inclusion of high-growth companies like Spotify and Carvana in the World Index reflects evolving market dynamics in the technology and e-commerce sectors.

The emerging markets additions, particularly from India and Taiwan, highlight the growing importance of Asian markets. The continued suspension of changes for Bangladesh securities indicates persistent market accessibility concerns that investors should monitor. These rebalancing activities typically trigger passive fund flows as ETFs and index funds adjust their holdings to match the new compositions.

LONDON--(BUSINESS WIRE)-- MSCI Inc. (NYSE: MSCI), a leading provider of critical decision support tools and services for the global investment community, announced the results of the November 2024 Index Review for the MSCI Equity Indexes. All changes will be implemented as of the close of November 25, 2024.

Highlights include:

MSCI Global Standard Indexes: Twenty-two securities will be added to and 57 securities will be deleted from the MSCI ACWI Index. The three largest additions to the MSCI World Index measured by full company market capitalization will be Spotify Technology (Sweden), Carvana A (USA) and Cvc Capital (Netherlands). The three largest additions to the MSCI Emerging Markets Index measured by full company market capitalization will be International Games System Co (Taiwan), Kalyan Jewellers India (India) and Oberoi Realty (India).

MSCI Global Small Cap Indexes: There will be 141 additions to and 219 deletions from the MSCI ACWI Small Cap Index.

MSCI Global Investable Market Indexes: There will be 114 additions to and 227 deletions from the MSCI ACWI Investable Market Index (IMI).

MSCI Global All Cap Indexes: There will be 114 additions to and 70 deletions from the MSCI World All Cap Index.

MSCI Frontier Markets Indexes: There will be four additions to and five deletions from the MSCI Frontier Markets Index. The three largest additions to the MSCI Frontier Markets Index measured by full company market capitalization will be VietNam Prosperity Joint Stock Commercial Bank (Vietnam), Afriquia Gaz (Morocco) and Dabaco Group (Vietnam). There will be 28 additions to and ten deletions from the MSCI Frontier Markets Small Cap Index.

In light of currently observed market accessibility issues, MSCI will continue to not implement changes as part of this Index Review for any securities classified in Bangladesh for the MSCI Bangladesh Indexes or impacted composite indexes.

These changes, along with other changes across MSCI Equity Indexes including the MSCI US Equity Indexes, MSCI US REIT Index, MSCI China A Onshore Indexes and China All Shares Indexes are available on MSCI’s “Index Review” web page: msci.com/index-review.

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About MSCI

MSCI is a leading provider of critical decision support tools and services for the global investment community. With over 50 years of expertise in research, data and technology, we power better investment decisions by enabling clients to understand and analyze key drivers of risk and return and confidently build more effective portfolios. We create industry-leading research-enhanced solutions that clients use to gain insight into and improve transparency across the investment process. For more information, please visit at www.msci.com.

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FAQ

When will MSCI's November 2024 Index Review changes take effect?

The changes from MSCI's November 2024 Index Review will be implemented as of the close of November 25, 2024.

What are the largest additions to MSCI World Index in November 2024?

The three largest additions to the MSCI World Index are Spotify Technology (Sweden), Carvana A (USA), and Cvc Capital (Netherlands).

How many securities will be added to and removed from MSCI ACWI Index?

Twenty-two securities will be added to and 57 securities will be deleted from the MSCI ACWI Index.

What changes are happening to MSCI Frontier Markets Index?

The MSCI Frontier Markets Index will have four additions and five deletions, with VietNam Prosperity Joint Stock Commercial Bank, Afriquia Gaz, and Dabaco Group being the largest additions.