Methodology

The MarketVector™ Investable Global Index (MVIGE) is a modular forward looking, broad, rules-based equity benchmark covering 50 developed and emerging markets. It targets approximately 98% of the free-float market capitalization of each eligible country’s investable universe and applies common rules for accessibility, liquidity, pricing, review, weighting and ongoing maintenance. The same foundation can support a broad global benchmark, a focused market sleeve or a custom policy index.

Four pillars

MVIGE carves out four geographic pillars, moving away from the traditional developed and emerging markets subsets. The four pillared classification system provides space to the dominant markets while giving visibility to other smaller markets and most importantly permitting clients to make choices for their own

1. United States: The scale and concentration of the U.S. market make it a strategic global allocation in its own right.
2. Developed ex US: Removing the dominant U.S. allocation restores visibility to mature non-U.S. markets like Japan, Germany and the UK and their different sector and currency exposures.
3. Investable greater China: Mainland China and Hong Kong can be treated as one investable ecosystem for allocation and geopolitical risk management; Taiwan remains distinct.
4. Emerging markets ex Greater China: Separating Greater China prevents one strategic exposure from defining the broader emerging-market opportunity set. Provides clients an opportunity to decide on their own exposure to larger emerging markets like India, Mexico and Brazil.

Country classification

The purpose of an index framework is not to preserve historical classifications. The goal is to help investors manage risk, diversification, and capital allocation. If the structure of the global economy changes, the framework should evolve with it.