DEFINITION of 'The Morgan Stanley Capital International All Country World Index Ex-U.S. (MSCI ACWI Ex-U.S.)'

The Morgan Stanley Capital International All Country World Index Ex-U.S. (MSCI ACWI Ex-U.S.) is a market-capitalization-weighted index maintained by Morgan Stanley Capital International (MSCI). It is designed to provide a broad measure of stock performance throughout the world, with the exception of U.S.-based companies. The MSCI All Country World Index Ex-U.S. includes both developed and emerging markets.

BREAKING DOWN 'The Morgan Stanley Capital International All Country World Index Ex-U.S. (MSCI ACWI Ex-U.S.)'

For investors who benchmark their U.S. and international stocks separately, this index provides a way to monitor international exposure apart from U.S. investments. In August 2018, the MSCI ACWI Ex-U.S. held mid and large-cap holdings across 22 countries classified as developed markets and 24 classified as emerging markets.

The top holdings of the MSCI ACWI Ex-U.S. as of March 30, 2018 were as follows:

  • Tencent Holdings
  • Nestle
  • Samsung Electronics Co.
  • Alibaba
  • Taiwan Semiconductor
  • HSBC Holdings
  • Novartis
  • Toyota Motor Corp.
  • Roche Holdings
  • Royal Dutch Shell
  • Total

These holdings span China, South Korea, Great Britain, Japan, and Taiwan. Country weights include: Japan (16.78%), United Kingdom (11.79%), China (7.6%), France (7.45%), Germany (6.64%) and Other (49.69%).

Methodology for Calculating MSCI ACWI Ex-U.S.

The MSCI ACWI Ex-U.S. Index is based on the MSCI Global Investable Market Indexes (GIMI) methodology. This approach to index construction allows for global views and regional comparisons across all market capitalization size, sector and style segments and combinations. The methodology focuses on index liquidity, investability and replicability. Portfolio managers review the index quarterly—in February, May, August and November. The aim of each review is to to reflect changes in the underlying equity markets in a timely manner. Managers re-balance the index during the May and November semi-annual reviews and re-calculate the large and mid capitalization cutoff points.

The MSCI ACWI Ex-U.S. Index should not be confused with MSCI, the independent provider of institutional investor insights and tools. Existing outside of any existing financial institution, MSCI consists of 190,000 equity indexes that are calculated daily. Notably, 12.4 trillion in equity assets are benchmarked to MSCI indexes worldwide, while 99 of the top 100 global investment managers are clients of MSCI. MSCI’s leading equity indexes include the following: 

  • MSCI World
  • MSCI Emerging Markets
  • MSCI Europe
  1. MSCI EMU Index

    The MSCI EMU Index is a market capitalization weighted index ...
  2. Europe, Australasia, Far East (EAFE)

    EAFE is an acronym for Europe Australasia and the Far East, representing ...
  3. MSCI BRIC Index

    The MSCI BRIC Index is an index measuring the equity market performance ...
  4. MSCI KLD 400 Social Index

    The MSCI KLD 400 Social Index includes 400 socially conscious ...
  5. World Equity Benchmark Series - ...

    The World Equity Benchmark Series is a type of international ...
  6. Index Fund

    An index fund is a portfolio of stocks or bonds that is designed ...
Related Articles
  1. Investing

    MSCI Deny Billion Dollar Takeover Talk

    More takeover chatter in the index based market. S&P Global said to offer $120/shr for MSCI, holders may want $130/shr.
  2. Investing

    The 3 Largest Global Ex-U.S. ETFs (VEU, VXUS)

    Discover global ex-U.S. exchange-traded funds and why you may want to use them in your portfolio, and learn about the three largest ETFs available.
  3. Investing

    Top 3 ETFs Tracking the MSCI World Index (URTH, VT)

    Morgan Stanley's Capital International World Index top three ETFs that can give you access to the investments it tracks...
  4. Investing

    Is the MSCI World Index ETF Risky? (URTH, IWDALN)

    If you're looking to build up global exposure to equities in developed markets, the MSCI World Index ETF is an option. We look at some of the index's risk features.
  5. Investing

    Why This China ETF Swelled in Size

    Ahead of a big index decision, investors have been flocking to this China ETF.
  6. Investing

    Charles Schwab Lays Out Why Stocks May Not Be Overvalued

    Stocks may have high valuations, but from a P/E perspective, they may have more room for growth, says Charles Schwab's Jeffrey Kleintop.
  7. Investing

    Another Cheap Developed Market ETF Gains Fans

    Developed market stocks are cheap, and this ETF is a cheap way of accessing them.
  8. Investing

    The Top 5 International Equity ETFs for 2016 (SCZ, VEU)

    Read about five international ETFs that could perform well in 2016, especially considering the prospect of a contraction in the United States.
  9. Investing

    Why Stock Investors Play the Risky 'Momentum' Game

    Risky bet: investors have been doubling down on the fastest-rising stocks, expecting yet more gains.
  10. Investing

    iShares in Top Spot for Fastest Growing ETFs (BLK, IGG)

    Discover seven of the fastest-growing funds in the iShares family of ETFs, all ranking among the industry's 10 fastest-growing funds overall in early 2016.
  1. Which benchmarks / indexes track the automotive sector?

    Explore some of the major benchmark equity indexes worldwide that analysts and investors use to track the performance of ... Read Answer >>
  2. Is it possible to invest in an index?

    While you cannot buy indexes, which are just benchmarks, there are three ways for you to mirror their performance. Read Answer >>
  3. What are the pros and cons of using the S&P 500 as a benchmark?

    Learn about the advantages and disadvantages of using the S&P 500 as a benchmark for portfolio performance, and understand ... Read Answer >>
  4. How is the value of the S&P 500 calculated?

    The S&P 500 is a U.S. market index that gives investors an idea of the overall movement in the U.S. equity market. The value ... Read Answer >>
Hot Definitions
  1. Intrinsic Value

    Intrinsic value is the perceived or calculated value of a company, including tangible and intangible factors, and may differ ...
  2. Current Assets

    Current assets is a balance sheet account that represents the value of all assets that can reasonably expected to be converted ...
  3. Volatility

    Volatility measures how much the price of a security, derivative, or index fluctuates.
  4. Money Market

    The money market is a segment of the financial market in which financial instruments with high liquidity and very short maturities ...
  5. Cost of Debt

    Cost of debt is the effective rate that a company pays on its current debt as part of its capital structure.
  6. Depreciation

    Depreciation is an accounting method of allocating the cost of a tangible asset over its useful life and is used to account ...
Trading Center