MSCI Emerging Markets Index

Introduction

The MSCI Emerging Markets Index is one of the world’s leading benchmarks for emerging market equities. It measures the performance of large- and mid-cap companies across developing economies, providing investors with broad exposure to countries experiencing rapid economic expansion, industrialization, and rising consumer demand.

Widely used by institutional investors and ETF providers, the index serves as the global benchmark for emerging market investing.

The History of the MSCI Emerging Markets Index

The MSCI Emerging Markets Index was launched in 1988 by MSCI to provide a standardized benchmark for emerging market equities and as financial markets in Asia, Latin America, Eastern Europe, the Middle East, and Africa expanded, the index became an essential tool for measuring the performance of developing economies and international portfolio diversification.

Today, it is one of the most widely followed emerging market indices worldwide.

How the Index Works

The index tracks large- and mid-cap companies across 24 emerging market countries, including:

• China

• India

• Taiwan

• South Korea

• Brazil

• Saudi Arabia

• Mexico

• South Africa

• Indonesia

• Thailand

The index is free-float market-capitalization weighted, meaning larger publicly traded companies have a greater influence on overall performance.

Why the MSCI Emerging Markets Index Matters

The index is widely used to:

• Benchmark emerging market portfolios.

• Measure developing market performance.

• Support ETFs and index funds.

• Diversify global investments.

• Track long-term economic growth.

• Monitor capital flows into emerging economies.

Its broad international coverage makes it one of the most important global equity benchmarks.

The MSCI Emerging Markets Index and Global Markets

Movements in the index often reflect:

• Emerging market growth.

• Global investor sentiment.

• Commodity price trends.

• Currency movements.

• International capital flows.

• Economic development.

Because emerging markets account for a growing share of global economic activity, the index plays an increasingly important role in international investing.

Advantages of the Index

The MSCI Emerging Markets Index offers:

• Broad international diversification.

• Exposure to high-growth economies.

• Transparent methodology.

• Global recognition.

• Long-term growth potential.

• Widely used investment benchmark.

These characteristics have made it the leading benchmark for emerging market equity investing.

Key Facts

• Launched: 1988

• Coverage: Large- and Mid-Cap Companies

• Countries: 24 Emerging Markets

• Weighting Method: Free-Float Market Capitalization

• Known For: Global Emerging Market Benchmark

• Global Importance: One of the world’s most widely followed emerging market stock indices

Conclusion

The MSCI Emerging Markets Index provides investors with comprehensive exposure to many of the world’s fastest-growing economies. By tracking leading companies across Asia, Latin America, the Middle East, Eastern Europe, and Africa, it offers valuable insight into global economic development and long-term investment opportunities. As emerging economies continue to expand their role in the world economy, the MSCI Emerging Markets Index remains one of the most important benchmarks in international finance.