MSCI Equity Indexes Announce August 2025 Review Changes

MSCI has announced changes to its Equity Indexes, with 42 securities added and 56 deleted from the MSCI ACWI Index. Rocket Lab Corp, SoFi Technologies, and Affirm Holdings A will be added to the MSCI World Index, while China CITIC Bank A, Dian Swastatika Sentosa, and Laopu Gold H will be added to the MSCI Emerging Markets Index. There will also be changes to the MSCI Global Small Cap, Global Investable Market, and Global All Cap Indexes.

MSCI has recently announced a series of substantial changes to its Equity Indexes, impacting several key indices including the MSCI ACWI Index, MSCI World Index, MSCI Emerging Markets Index, MSCI Global Small Cap Index, MSCI Global Investable Market Index, and MSCI Global All Cap Index. These updates are designed to better reflect the evolving global market landscape and the growing importance of macro risks in equity portfolios.

Key additions and deletions include:

- MSCI ACWI Index: 42 securities were added, with 56 being removed. Notable additions include Rocket Lab Corp, SoFi Technologies, and Affirm Holdings A.
- MSCI World Index: Rocket Lab Corp, SoFi Technologies, and Affirm Holdings A were added.
- MSCI Emerging Markets Index: China CITIC Bank A, Dian Swastatika Sentosa, and Laopu Gold H were added.
- MSCI Global Small Cap Index, Global Investable Market Index, and Global All Cap Index: Changes were also announced, though specific details were not provided.

These changes aim to enhance the representation of innovative and emerging sectors within the MSCI indexes, aligning with the growing focus on macro risk management and sector diversification. The addition of Rocket Lab Corp, SoFi Technologies, and Affirm Holdings A reflects the increasing importance of technology and fintech sectors in global markets. Similarly, the inclusion of China CITIC Bank A, Dian Swastatika Sentosa, and Laopu Gold H in the MSCI Emerging Markets Index underscores the growing significance of the emerging markets, particularly in Asia.

These updates come amidst a backdrop of heightened macroeconomic risks, as highlighted in MSCI's recent research on hedging macro risk in equity portfolios [1]. The analysis suggests that sectors like real estate and utilities, along with investment styles such as minimum volatility and growth, are particularly vulnerable to rising rates. The changes to the MSCI indexes are part of a broader effort to better identify and manage these risks, enabling investors to construct more resilient portfolios.

References:
[1] https://www.msci.com/research-and-insights/blog-post/hedging-macro-risk-in-equity-portfolios