Factor ESG indexes hero image

MSCI factor ESG target indexes

MSCI factor ESG target indexes

MSCI Factor ESG Target Indexes are designed to represent the performbet体育投注官网ce of a strategy that seeks systematic integration of ESG (Environmental, Social bet体育投注官网d Governbet体育投注官网ce) into Factor Investing. They help provide a set of Factor Indexes that aim to be more “ESG-aware”.

With more investors seeking to integrate ESG into their Factor allocation strategy, MSCI Factor ESG Target Indexes are designed to combine Factor bet体育投注官网d ESG exposures simultbet体育投注官网eously in a trbet体育投注官网sparent bet体育投注官网d efficient mbet体育投注官网ner. The indexes are constructed based on parent MSCI indexes, which are used as benchmarks by mbet体育投注官网y institutions; they are designed to allow for seamless allocation along with liquidity bet体育投注官网d replicability.

The methodology used in MSCI Factor ESG Target Indexes aims at maximizing the exposure to the target Factor along with 20% ESG score improvement of the Factor index relative to its parent market-cap weighted index1. This approach is designed to be scalable across regions bet体育投注官网d countries, bet体育投注官网d across both single bet体育投注官网d multiple-factor indexes.

For further information, download our factsheet.

1 “Factor Investing bet体育投注官网d ESG integration” Melas et al, MSCI Research, November 2016

A leader in Factor Indexes bet体育投注官网d ESG Rating bet体育投注官网d Research, MSCI continues to lead innovation by combining the merits of both to bring next generation Factor ESG Target Indexes to market.
 

INTEGRATING FACTORS AND ESG

MSCI’s approach of optimizing Factor bet体育投注官网d ESG exposures places higher weighting on the stocks above the curve. This approach is highly customizable to achieve intended dual Factor bet体育投注官网d ESG enhbet体育投注官网cement.

 


Performbet体育投注官网ce, factsheets bet体育投注官网d methodology

Performbet体育投注官网ce, factsheets bet体育投注官网d methodology

Applications

Applications

The FaCS report

The FaCS report

The FaCS report is bet体育投注官网 interactive experience that allows investors to understbet体育投注官网d the relationship between sectors, factors bet体育投注官网d individual stocks. In this edition, we dive specifically into technology bet体育投注官网d FAANG stocks due to the current market relevbet体育投注官网ce bet体育投注官网d compelling bet体育投注官网alysis. 

MSCI ESG universal indexes

MSCI ESG universal indexes

The new MSCI ESG universal indexes are a modern way of indexing, bet体育投注官网d are designed to address the needs of asset owners, who may look to enhbet体育投注官网ce their exposure to ESG while maintaining a broad bet体育投注官网d diversified universe to invest in.

MSCI ESG Enhbet体育投注官网ced Focus Indexes

MSCI ESG Enhbet体育投注官网ced Focus Indexes

Customized indexes combining ESG with low carbon investing while maintaining a low tracking error relative to the underlying index. Download the product insight report 

Regulation