Emerging Markets Index (MSCI)

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Definition of 'Emerging Markets Index (MSCI)'

The MSCI Emerging Markets Index (MSCI EM) is a free-float-adjusted market capitalization-weighted index of stocks from emerging market countries. It is one of the most widely used benchmarks for emerging market stocks. The index is composed of companies from 27 emerging market countries, with weights based on their market capitalization. The MSCI EM is a global index, meaning that it includes companies from all over the world. However, it is focused on emerging markets, which are defined as countries with less developed economies and stock markets.

The MSCI EM is a valuable tool for investors who want to track the performance of emerging market stocks. It can also be used as a benchmark for actively managed emerging market funds. The index is regularly reviewed and rebalanced to ensure that it remains representative of the emerging market equity universe.

The MSCI EM is a liquid index, meaning that there is a lot of trading activity in the stocks that make up the index. This makes it easy for investors to buy and sell index-tracking funds. The index is also relatively low-cost, making it a good option for investors who are looking for an affordable way to track the performance of emerging market stocks.

The MSCI EM has a long history, dating back to 1988. Over the years, the index has grown in size and importance. It is now one of the most widely followed benchmarks for emerging market stocks.

The MSCI EM is a valuable tool for investors who want to gain exposure to the emerging market equity market. It is a liquid, low-cost index that is representative of the emerging market equity universe.

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