MSCI All Country World Index (ACWI)

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Definition of 'MSCI All Country World Index (ACWI)'

The MSCI All Country World Index (ACWI) is a free-float market capitalization-weighted index of equity securities from developed and emerging markets. It is designed to measure the performance of large, mid, and small companies across 23 developed and 26 emerging market countries. The ACWI is one of the most widely used benchmarks for global equity investing.

The ACWI is calculated by MSCI, a leading provider of global equity indexes. The index is based on the market capitalization of companies listed on stock exchanges in the 23 developed and 26 emerging market countries. The market capitalization of a company is the total value of its outstanding shares.

The ACWI is a float-adjusted index, which means that only shares that are actively traded are included in the index. This helps to ensure that the index is representative of the investable market.

The ACWI is a capitalization-weighted index, which means that the weight of each company in the index is based on its market capitalization. This means that larger companies have a greater influence on the performance of the index than smaller companies.

The ACWI is a global index, which means that it includes companies from all over the world. This makes it a good choice for investors who want to diversify their portfolios internationally.

The ACWI is a liquid index, which means 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 shares of the index.

The ACWI is a transparent index, which means that investors can easily see how the index is constructed and how it is calculated. This makes it a good choice for investors who want to understand how the index works.

The ACWI is a well-diversified index, which means that it includes companies from a variety of industries and countries. This helps to reduce the risk of the index.

The ACWI is a benchmark index, which means that it is used as a reference point for other investments. This makes it a good choice for investors who want to compare the performance of their portfolios to the performance of the market.

The ACWI is a popular index, which means that it is widely used by investors and financial professionals. This makes it a good choice for investors who want to invest in a global index that is well-known and well-respected.

The MSCI All Country World Index is a good choice for investors who want to invest in a global index that is diversified, liquid, transparent, and well-respected.

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