MSCI indices market capitalisations

There are two ways to set weights according to market capitalisation. The first method is to use only the market capitalisations of all the funds in your portfolio. The weight of a fund is determined by dividing its market cap by the sum of the market cap of all the funds in the portfolio. This method therefore sets the weights only relative to the other funds, and not relative to some fixed index. You can take ESG exclusions into account with this method.

The second method to determine weights is to compare the market cap of a regional index to the market cap of a total world index, most commonly the ACWI IMI (All Country World Investable Market Index). This method sets the weights not relative to each other, but relative to the absolute market cap of a total world index. I therefore call these absolute weights, in contrast to the relative weights of the first method. It can be difficult to fill all the categories to make your portfolio sum to 100 %. For example, you might not want to have a separate Emerging Market Small Cap fund or separate Israel fund. This can be solved by substituting the closest related fund you do have, such as increasing the weight of Emerging Markets and Europe for the previous two examples.

Portfolios with relative weights

This table shows the relative weights of indices or funds in selected portfolios with regards to the summed market capitalisation of the indices or funds that are used. These are not necessarily the same as the weights with regards to the full world market capitalisation (such as the ACWI IMI index).

Relative weights are shown for a portfolio containing only two funds, and for one containing three funds.

Index Market cap 2 funds 3 funds No EM
MSCI World 53,925,958.99 88.7 % 79.2 % 88.1 %
MSCI World Small Cap 7,305,685.13 N/A 10.7 % 11.9 %
MSCI Emerging Markets 6,893,299.91 11.3 % 10.1 % N/A
Fund ESG exclusions Adjusted market cap 2 funds 3 funds No EM
Northern Trust World Custom ESG 4.1 % 51,714,994.67 89.2 % 80.7 % 89.4 %
Northern Trust World Small Cap ESG Low Carbon 16.5 % 6,100,247.08 N/A 9.5 % 10.6 %
Northern Trust Emerging Markets Custom ESG 8.9 % 6,279,796.22 10.8 % 9.8 % N/A
Fund ESG exclusions Adjusted market cap 2 funds
ACTIAM Duurzaam Index Aandelenfonds Wereld 16.7 % 44,920,323.84 89.9 %
ACTIAM Duurzaam Index Aandelenfonds Opkomende Landen 26.8 % 5,045,895.53 10.1 %
ACTIAM ESG exclusion percentages updated semiannually, not monthly.

'World' and 'World Small Cap' are complementary and only include developed markets. 'Emerging Markets Small Cap' is complementary to 'Emerging Markets' but is not practical to include separately in a simple portfolio due to the small market capsee below and fund availability.

Absolute weights of indices

This table shows the weight of indices compared to the market capitalisation of a reference index, such as the World (IMI) and ACWI (IMI) indices. Also included are the weights for a simple example portfolio.

Index (PDF download) Market cap % World % ACWI (SC) % ACWI IMI Last updated
ACWI IMI 69,153,771.86 N/A N/A 100 % APR 29, 2022
├─ ACWI 60,819,258.90 N/A 100 % 87.9 % APR 29, 2022
│  ├─ World 53,925,958.99 100 % 88.7 % 78.0 % APR 29, 2022
│  │  ├─ USA 36,910,722.30 68.4 % 60.7 % 53.4 % APR 29, 2022
│  │  ├─ Canada 1,960,659.56 3.6 % 3.2 % 2.8 % APR 29, 2022
│  │  ├─ Europe 9,732,628.67 18.0 % 16.0 % 14.1 % APR 29, 2022
│  │  ├─ Pacific 5,213,680.52 9.7 % 8.6 % 7.5 % APR 29, 2022
│  │  │  ├─ Japan 3,286,410.02 6.1 % 5.4 % 4.8 % APR 29, 2022
│  │  │  └─ Pacific ex Japan 1,927,270.49 3.6 % 3.2 % 2.8 % APR 29, 2022
│  │  └─ Israel 108,267.93 0.2 % 0.2 % 0.2 % APR 29, 2022
│  └─ Emerging Markets 6,893,299.91 N/A 11.3 % 10.0 % APR 29, 2022
└─ ACWI Small Cap 8,334,512.96 N/A 100 % 12.1 % APR 29, 2022
   ├─ World Small Cap 7,305,685.13 N/A 87.7 % 10.6 % APR 29, 2022
   └─ Emerging Markets Small Cap 1,028,827.83 N/A 12.3 % 1.5 % APR 29, 2022
Index (PDF download) Market cap % World IMI % ACWI IMI Last updated
ACWI IMI 69,153,771.86 N/A 100 % APR 29, 2022
├─ World IMI 61,231,644.12 100 % 88.5 % APR 29, 2022
│  ├─ USA IMI 41,258,641.84 67.4 % 59.7 % APR 29, 2022
│  ├─ Canada IMI 2,260,463.40 3.7 % 3.3 % APR 29, 2022
│  ├─ Europe IMI 11,165,323.23 18.2 % 16.1 % APR 29, 2022
│  ├─ Pacific IMI 6,350,254.24 10.4 % 9.2 % APR 29, 2022
│  │  ├─ Japan IMI 4,001,526.83 6.5 % 5.8 % APR 29, 2022
│  │  └─ Pacific ex Japan IMI 2,348,727.42 3.8 % 3.4 % APR 29, 2022
│  └─ Israel IMI 196,961.41 0.3 % 0.3 % APR 29, 2022
└─ Emerging Markets IMI 7,922,127.74 N/A 11.5 % APR 29, 2022
Fund (Typical) ticker Market cap % ACWI IMI
iShares Core MSCI World IWDA 53,925,958.99 78.0 %
iShares MSCI World Small Cap IUSN 7,305,685.13 10.6 %
iShares Core MSCI EM IMI EMIM 7,922,127.74 11.5 %

The index data is also available in a CSV file.