Definition: MSCI is an acronym for Morgan Stanley Capital Investments. There are several MSCI indices, which are widely used as benchmarks for foreign stock portfolio performance.
The Major MSCI Indices and Acronym Suffixes:
- MSCI ACWI: ACWI is an acronym that means All Country World Index. The MSCI ACWI covers over 9,000 securities across large, mid and small cap size segments and across style and sector segments in 45 Developed and Emerging Markets.
- MSCI EAFE: Widely accepted as the international markets benchmark, EAFE is an acronym that means Europe, Australasia, and Far East. The MSCI EAFE Index is an aggregate of 21 individual country indexes that collectively represent many of the major markets of the world.
- MSCI World: This index covers over 1,600 securities from developed countries all over the world, hence the name. This index also covers the United States so for US investors, the MSCI World is not a true foreign stock index because it includes many US domestic stocks.
- MSCI Acronym Suffixes: If you see the acronym "IL" added to the index name, it means that the index is listed in local currency. If you see "DM" it meas Developed Markets and if you see "EM" it means Emerging Markets.