Global securities index provider MSCI announced its latest semi-annual adjustments today, stating that the MSCI ACWI Index will add 42 securities and remove 121 securities. Notably, MSCI has decided to include MicroStrategy, the dominant holder of Bitcoin among US-listed companies, in the index.
MSCI conducts quarterly reviews of global stock markets to ensure that its indices reflect changes in the overall stock market in a timely manner. Today, MSCI announced its latest semi-annual adjustments, stating that the MSCI ACWI Index will add 42 securities and remove 121 securities. These changes will take effect on May 31.
It is worth noting that the three largest companies added to the global standard index are MicroStrategy, the dominant holder of Bitcoin among US-listed companies, as well as data storage company Pure Storage and electromechanical construction company Emcor Group.
Eric Balchunas, an ETF analyst at Bloomberg, tweeted that this adjustment is significant because the related assets of the global standard index exceed $4 trillion and are highly favored by institutional investors.
As the dominant holder of Bitcoin among US-listed companies, MicroStrategy’s stock price has risen over 89% this year, surpassing Bitcoin’s 47% increase. With MicroStrategy’s inclusion in the global standard index, Michael Saylor, the founder and CEO of MicroStrategy, tweeted:
What is MSCI?
MSCI, short for Morgan Stanley Capital International, formerly known as Morgan Stanley Capital International, is the world’s first index company. It has since been renamed MSCI Inc. It is a well-known international index company, along with FTSE Group and S&P 500.
The MSCI index is an important indicator for global investors to track the performance of stock markets in various countries. It is also the underlying index for many index funds and derivative financial products. The current value of assets related to the MSCI index exceeds $15 trillion, and there are more than 1,370 ETFs tracking indices compiled by MSCI.
MSCI conducts index weight and component stock adjustments in February, May, August, and November each year. February and August are quarterly adjustments, while May and November are semi-annual adjustments, which usually involve larger changes. MSCI announces the latest review results and effective dates in advance on its official website, and there may be significant adjustments to component stocks on the effective date.
What is the MSCI All Country World Index (ACWI)?
The MSCI All Country World Index (ACWI) is one of the most widely followed stock indices globally. Compiled by MSCI, it aims to represent the performance of large and mid-cap stocks in 23 developed markets and 24 emerging markets. The index covers 2,840 constituents across 11 sectors and represents approximately 85% of the investable equity opportunity value in each market.
As of the end of April, the top ten holdings in the MSCI ACWI Index are Microsoft (3.95%), Apple (3.59%), NVIDIA (3.06%), Amazon (2.34%), Alphabet A (1.38%), META (1.37%), Alphabet C (1.22%), Eli Lilly (0.90%), TSMC (0.86%), and Bank of America (0.83%).
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