Morningstar Introduces Modern Market 100 Index, Bridging Public & Private Markets in a Single Benchmark

Morningstar has introduced the Morningstar PitchBook US Modern Market 100 Index, the first benchmark to track both public and private market companies in a single index. The index combines the largest US-listed companies with significant late-stage venture-backed private companies, enhancing diversification and growth potential in innovative segments. The index allocates 90% to public companies and 10% to private firms, with daily calculations and transparent pricing. This new index is part of Morningstar's growing suite of indexes, designed to equip investors with more accurate tools and deeper insights.

Morningstar, Inc. (Nasdaq: MORN) has unveiled the Morningstar PitchBook US Modern Market 100 Index, a pioneering benchmark that combines the largest US-listed companies with significant late-stage venture-backed private companies. This new index aims to enhance diversification and growth potential in innovative segments, particularly in technology-driven areas such as AI, biotech, and fintech Introducing the Morningstar PitchBook US Modern Market 100: The First Benchmark to Track Public & Private Market Companies in a Single Index^[1].

The Modern Market 100 Index allocates 90% to public companies and 10% to private firms, providing a unified framework to benchmark performance and serve as the basis for investable products. It is the first index to measure the performance of 100 of the largest US companies, including 90 publicly listed firms and 10 VC-backed leaders such as SpaceX, OpenAI, and Stripe Introducing the Morningstar PitchBook US Modern Market 100: The First Benchmark to Track Public & Private Market Companies in a Single Index^[1].

Morningstar Indexes, the fastest-growing global index provider for the last five years, has built this index to address the evolving needs of investors. The index calculates daily, with prices for VC-backed companies based on verified secondary market transactions, while public company prices are sourced from official exchange closes. This transparency and accuracy are crucial for investors seeking reliable benchmarks Introducing the Morningstar PitchBook US Modern Market 100: The First Benchmark to Track Public & Private Market Companies in a Single Index^[1].

The introduction of the Modern Market 100 Index underscores Morningstar's commitment to developing next-generation companion indexes that equip investors with more accurate tools and deeper insights. This effort is part of Morningstar's broader strategy to navigate the convergence of private and public markets, a trend driven by the increasing capitalization of private companies and their longer tenure in the private market Introducing the Morningstar PitchBook US Modern Market 100: The First Benchmark to Track Public & Private Market Companies in a Single Index^[1].

Ron Bundy, President of Morningstar Indexes, noted, "As private investments make their way into more investor portfolios, investors need better data and relevant benchmarks to capture the modern opportunity set. Our new index empowers investors with a unified framework that reflects both public and private market leaders, so investors can evaluate public and private investments on the same level playing field" Introducing the Morningstar PitchBook US Modern Market 100: The First Benchmark to Track Public & Private Market Companies in a Single Index^[1].

Joanna McGinley, EVP of Strategic Partnerships and Initiatives at PitchBook, a Morningstar company, added, "PitchBook is uniquely positioned to help build this index because of the depth of our private market data and the research expertise we’ve developed over nearly two decades. Modern Market 100 brings together our proprietary insights into venture-backed companies with the transparency of public markets, offering investors an investable view of how today’s most important companies perform across the private-to-public lifecycle. We believe this index not only provides a valuable benchmarking tool but also advances the industry by helping investors better understand and navigate the convergence of private and public markets" Introducing the Morningstar PitchBook US Modern Market 100: The First Benchmark to Track Public & Private Market Companies in a Single Index^[1].

The Modern Market 100 Index is a significant development in the financial landscape, providing investors with a comprehensive view of the modern equity market, bridging the gap between public and private markets. This innovation is set to enhance investment strategies and offer deeper insights into the performance of both public and private companies.