Global investing has changed dramatically over the past decade. While many investors want international diversification, not everyone wants the same exposure to every major market. Growing interest in regional allocation, geopolitical risk, and portfolio diversification has made specialized global indexes more relevant than ever. The MSCI ACWI IMI ex USA ex China ex Hong Kong Index was created to meet that need. It offers broad exposure to developed and emerging-market equities while intentionally excluding the United States, China, and Hong Kong, making it a distinctive benchmark for investors seeking a different international allocation.
As investors become more selective about regional exposure and portfolio concentration, specialized global benchmarks have become increasingly important. Rather than simply tracking the world’s largest markets, this index provides an alternative approach that helps investors build internationally diversified portfolios while intentionally excluding selected regions.
Unlike many traditional global indexes that focus mainly on large companies, the MSCI ACWI IMI ex USA ex China ex Hong Kong Index also includes mid-cap and small-cap stocks. This wider market coverage gives investors a more comprehensive view of international equity markets and helps explain why the index has become an important benchmark for funds, institutions, and long-term portfolio strategies.
Key Takeaways
Before exploring the details, here are the most important facts every investor should know.
- The MSCI ACWI IMI ex USA ex China ex Hong Kong Index provides broad international equity exposure while excluding the United States, China, and Hong Kong.
- It includes large-cap, mid-cap, and small-cap companies, making it more comprehensive than many traditional international benchmarks.
- The index covers approximately 99% of the investable equity opportunity set across its eligible developed and emerging markets.
- It contains more than 5,100 companies, offering broad diversification across countries, sectors, and industries.
- Investors often use this benchmark to build internationally diversified portfolios with reduced exposure to the U.S. and China-related markets.
- The MSCI ACWI IMI ex USA ex China ex Hong Kong Index is widely followed by asset managers, ETFs, institutional investors, and portfolio strategists as a global equity benchmark.
Index Snapshot
If you’re looking for a quick summary before exploring the full guide, use this table.
| Question | Short Answer |
|---|---|
| What does the index track? | Thousands of developed- and emerging-market stocks outside the U.S., China, and Hong Kong. |
| Does it include small-cap companies? | Yes. It covers large-, mid-, and small-cap stocks. |
| Is it directly investable? | No. Investors typically access it through ETFs or index funds. |
| Who commonly uses it? | Institutional investors, asset managers, retirement plans, and long-term investors. |
| Why is it different? | It offers broad international diversification while excluding three major equity markets. |
This summary helps readers quickly understand the benchmark before exploring its methodology and investment applications.
MSCI ACWI IMI ex USA ex China ex Hong Kong Index at a Glance
The table below highlights the key characteristics of the index, making it easy to understand its structure, market coverage, and primary investment purpose before exploring the detailed sections.
| Feature | Details |
|---|---|
| Index Provider | MSCI |
| Asset Class | Global Equities |
| Coverage | Developed and Emerging Markets |
| U.S. Exposure | Excluded |
| China Exposure | Excluded |
| Hong Kong Exposure | Excluded |
| Company Size | Large-, Mid-, and Small-Cap Stocks |
| Number of Constituents | More than 5,100 Companies |
| Weighting Methodology | Free-Float Adjusted Market Capitalization |
| Primary Purpose | Benchmark for International Equity Investments |
Global investors often want international diversification without concentrating their portfolios in a few dominant markets. The MSCI ACWI IMI ex USA ex China ex Hong Kong Index was developed to meet that need by tracking thousands of companies across developed and emerging markets while excluding the United States, China, and Hong Kong. It serves as a benchmark for investors seeking broader global exposure with a different regional allocation.
Unlike many traditional international indexes, this benchmark includes large-cap, mid-cap, and small-cap companies, offering more comprehensive market coverage. As a result, the MSCI ACWI IMI ex USA ex China ex Hong Kong Index provides a broader picture of global equity markets and is widely used to measure the performance of internationally diversified investment portfolios.
Understanding the Name
Each part of the index name explains how the benchmark is built. Breaking it down makes the structure much easier to understand.
| Term | Meaning |
|---|---|
| MSCI | Global provider of investment indexes and portfolio analytics. |
| ACWI | All Country World Index, covering both developed and emerging markets. |
| IMI | Investable Market Index, including large-, mid-, and small-cap companies. |
| ex USA | Excludes companies listed in the United States. |
| ex China | Excludes mainland China-listed companies. |
| ex Hong Kong | Excludes companies listed in Hong Kong. |
Together, these components define the MSCI ACWI IMI ex USA ex China ex Hong Kong Index, creating a globally diversified benchmark that intentionally excludes three major equity markets while maintaining broad international market coverage.
Who Created MSCI?
MSCI, originally known as Morgan Stanley Capital International, is one of the world’s leading providers of investment indexes, portfolio analytics, ESG research, and risk-management solutions. Its benchmarks are widely used by asset managers, pension funds, exchange-traded funds (ETFs), and institutional investors to measure investment performance and build diversified portfolios.
Today, trillions of dollars in global assets are benchmarked against MSCI indexes, making the company one of the most influential names in the international investment industry.
Why This Index Matters
Global investing is no longer just about owning international stocks—it’s about choosing the right mix of markets. The MSCI ACWI IMI ex USA ex China ex Hong Kong Index stands out by giving investors broad global equity exposure while intentionally excluding three of the world’s largest markets. This approach offers an alternative benchmark for portfolios seeking a different regional allocation.
Many traditional international benchmarks serve broad investment needs, but they don’t all provide the same level of flexibility. Some exclude emerging markets, while others focus only on large- and mid-cap companies. The MSCI ACWI IMI ex USA ex China ex Hong Kong Index fills this gap by combining developed and emerging markets with large-, mid-, and small-cap stocks in a single benchmark.
This benchmark may be suitable for:
- Investors who already hold substantial U.S. equity investments.
- Retirement portfolios seeking broader international diversification.
- Institutions with limited or no direct China exposure.
- Investors managing geopolitical or regional concentration risk.
- Portfolio builders who want small-cap exposure alongside larger companies.
Why Investors Follow This Index
Demand for specialized international benchmarks has increased as investors look beyond traditional global indexes. The MSCI ACWI IMI ex USA ex China ex Hong Kong Index has gained attention because it allows investors to diversify internationally while controlling exposure to specific markets.
Investors commonly use this benchmark to:
- Reduce concentration in U.S. equities.
- Exclude direct exposure to China and Hong Kong.
- Increase diversification across developed and emerging markets.
- Compare international ETFs and index funds.
- Measure the performance of globally diversified portfolios.
Choosing the right benchmark is just as important as selecting the right investment fund, making it essential to understand how this index fits within an overall portfolio strategy.
Key Features of the Index
Before exploring country allocations and holdings, the table below summarizes the most important characteristics of the benchmark.
| Feature | Details |
|---|---|
| Index Type | Global Equity Index |
| Provider | MSCI |
| Market Coverage | Developed and Emerging Markets |
| Excluded Markets | United States, China and Hong Kong |
| Company Size | Large-, Mid-, and Small-Cap Stocks |
| Weighting Method | Free-Float Adjusted Market Capitalization |
| Primary Purpose | International Equity Benchmark |
| Best Suited For | Investors seeking diversified global exposure outside selected markets |
These features explain why the MSCI ACWI IMI ex USA ex China ex Hong Kong Index is widely used as a benchmark for international equity funds, ETFs, institutional portfolios, and long-term investment strategies.
Countries Included in the Index
One of the biggest strengths of this benchmark is its broad geographic reach. Rather than concentrating investments in only a handful of economies, the MSCI ACWI IMI ex USA ex China ex Hong Kong Index provides exposure to developed and emerging markets across Europe, Asia-Pacific, the Middle East, Latin America, and Africa.
Developed-market exposure includes countries such as:
- Japan
- Canada
- United Kingdom
- France
- Germany
- Switzerland
- Australia
- Netherlands
- Sweden
Emerging-market exposure includes countries such as:
- India
- Taiwan
- South Korea
- Brazil
- Mexico
- Saudi Arabia
- Indonesia
- Thailand
- Malaysia
- South Africa
By excluding China and Hong Kong while maintaining exposure to many other global economies, the index offers a distinct international allocation that differs from broader MSCI global benchmarks.
What the Index Does Not Include
Broad diversification does not mean investing in every asset class or every global market. The MSCI ACWI IMI ex USA ex China ex Hong Kong Index follows a clearly defined methodology, so investors should understand what falls outside its scope before using it as a portfolio benchmark.
The index does not include:
- Companies listed in the United States
- Mainland China-listed companies
- Hong Kong-listed companies
- Bonds and other fixed-income securities
- Commodities such as gold, silver, or crude oil
- Cryptocurrencies and other digital assets
- Private equity investments
- Direct real estate investments outside publicly listed companies
These exclusions make the benchmark a global equity index, not a complete multi-asset investment portfolio. Understanding what is excluded helps investors compare the index with other global benchmarks and choose investment products that align with their diversification goals.
Market Coverage by Country
Global diversification is one of the defining strengths of the MSCI ACWI IMI ex USA ex China ex Hong Kong Index. Instead of relying on only a few major economies, the benchmark spreads its exposure across developed and emerging markets, giving investors access to thousands of companies from Europe, Asia-Pacific, Latin America, the Middle East, and Africa.
Its market coverage includes:
- Developed markets (excluding the United States and Hong Kong)
- Emerging markets (excluding China)
- Thousands of publicly listed companies across multiple regions
This broad geographic allocation helps reduce dependence on any single economy while creating a more balanced international equity portfolio.
Largest Country Weights
Country allocation plays an important role in how any global benchmark performs. The MSCI ACWI IMI ex USA ex China ex Hong Kong Index maintains diversified country exposure, reducing reliance on a single market while reflecting the relative size of each economy within the eligible investment universe.
| Country | Approximate Weight |
|---|---|
| Japan | 16.15% |
| Taiwan | 9.56% |
| United Kingdom | 8.94% |
| Canada | 8.71% |
| South Korea | 7.95% |
| Other Countries | 48.69% |
Japan represents the largest allocation, while nearly half of the benchmark is distributed across numerous other developed and emerging markets, reinforcing its diversified structure.
Top Holdings
The companies with the highest weights offer a snapshot of where the benchmark’s largest investments are concentrated. Because the MSCI ACWI IMI ex USA ex China ex Hong Kong Index uses a free-float-adjusted market capitalization methodology, larger companies generally receive higher index weights.
| Company | Country | Sector |
|---|---|---|
| Taiwan Semiconductor Manufacturing | Taiwan | Information Technology |
| Samsung Electronics | South Korea | Information Technology |
| SK Hynix | South Korea | Information Technology |
| ASML Holding | Netherlands | Information Technology |
| HSBC Holdings | United Kingdom | Financials |
| Roche Holding | Switzerland | Health Care |
| AstraZeneca | United Kingdom | Health Care |
| Novartis | Switzerland | Health Care |
| Royal Bank of Canada | Canada | Financials |
| Nestlé | Switzerland | Consumer Staples |
These holdings demonstrate that technology, financial services, healthcare, and consumer staples remain key contributors to the benchmark’s overall performance.
Sector Exposure
A well-diversified portfolio is not built on countries alone—it also depends on balanced sector allocation. The MSCI ACWI IMI ex USA ex China ex Hong Kong Index provides exposure across major industries, helping investors participate in multiple areas of the global economy rather than relying on a single sector.
| Sector | Approximate Weight |
|---|---|
| Financials | 21.81% |
| Information Technology | 21.45% |
| Industrials | 15.86% |
| Materials | 8.11% |
| Consumer Discretionary | 7.26% |
| Health Care | 6.77% |
| Consumer Staples | 5.23% |
| Energy | 4.77% |
| Communication Services | 3.56% |
| Utilities | 3.06% |
| Real Estate | 2.12% |
Financials and information technology account for the largest share of the benchmark. Even without U.S. and China exposure, investors still gain meaningful access to global technology leaders through companies based in Taiwan, South Korea, the Netherlands, and other international markets.
Why Small-Cap Stocks Matter
Large companies often dominate global stock indexes, but they don’t tell the whole story. The MSCI ACWI IMI ex USA ex China ex Hong Kong Index goes a step further by including small-cap companies, giving investors access to a much broader share of the international equity market.
Including small-cap stocks offers several potential advantages:
- Broader representation of local economies
- Greater portfolio diversification
- Exposure to emerging businesses with long-term growth potential
- Reduced concentration in mega-cap companies
Small-cap stocks can also be more volatile and less liquid than larger companies, making them an important source of opportunity as well as additional investment risk.
How the Index Works
Every global benchmark follows a defined methodology, and this one is no exception. The MSCI ACWI IMI ex USA ex China ex Hong Kong Index uses a free-float-adjusted market capitalization approach, meaning companies with larger investable market values generally receive higher weights.
Its IMI structure combines large-, mid-, and small-cap companies to create broader market coverage than indexes limited to only large- and mid-cap stocks.
How MSCI Selects Companies for the Index
Not every publicly traded company qualifies for inclusion. The MSCI ACWI IMI ex USA ex China ex Hong Kong Index is built using MSCI’s Global Investable Market Index (GIMI) Methodology, which applies consistent selection standards across global markets.
Before a company is added, MSCI evaluates factors such as:
- Free-float adjusted market capitalization
- Trading liquidity
- Foreign ownership availability
- Market accessibility
- Company size classification
- Investability standards
- Ongoing eligibility during periodic index reviews
These rules help ensure the benchmark reflects companies that investors can realistically access while maintaining consistent global representation.
Why Exclude the United States?
Many investors already have significant exposure to U.S. equities through retirement accounts, index funds, or domestic portfolios. The MSCI ACWI IMI ex USA ex China ex Hong Kong Index helps reduce portfolio overlap by providing international exposure without including U.S.-listed companies.
This allows investors to complement existing U.S. investments instead of duplicating them.
Why Exclude China and Hong Kong?
Investment objectives vary from one portfolio to another. The MSCI ACWI IMI ex USA ex China ex Hong Kong Index excludes China and Hong Kong to provide an alternative benchmark for investors seeking broader international diversification outside those markets.
Common reasons include:
- Managing geopolitical risk
- Meeting institutional investment policies
- Reducing regulatory uncertainty
- Increasing exposure to other emerging markets such as India, Taiwan, South Korea, Brazil, and Mexico
- Building internationally diversified portfolios with different regional allocations
The exclusion reflects the benchmark’s design rather than a judgment about the investment quality of any specific market.
MSCI ACWI IMI ex USA ex China ex Hong Kong vs MSCI ACWI IMI
Choosing between these two benchmarks depends on the type of international exposure an investor wants.
| Feature | MSCI ACWI IMI | MSCI ACWI IMI ex USA ex China ex Hong Kong |
|---|---|---|
| Includes U.S. Stocks | Yes | No |
| Includes China | Yes | No |
| Includes Hong Kong | Yes | No |
| Developed Markets | Yes | Yes |
| Emerging Markets | Yes | Yes (excluding China) |
| Small-Cap Stocks | Yes | Yes |
| Best For | Complete global equity exposure | International exposure outside the U.S., China, and Hong Kong |
The standard MSCI ACWI IMI offers complete global market exposure, while the exclusion version provides a more targeted international allocation.
MSCI ACWI IMI ex USA ex China ex Hong Kong vs Standard ACWI ex USA ex China ex Hong Kong
Although the names are similar, one important difference separates these benchmarks. The MSCI ACWI IMI ex USA ex China ex Hong Kong Index includes small-cap companies, giving investors broader market coverage.
| Feature | IMI Version | Standard Version |
|---|---|---|
| Large-Cap Stocks | ✓ | ✓ |
| Mid-Cap Stocks | ✓ | ✓ |
| Small-Cap Stocks | ✓ | ✗ |
| Market Coverage | Broader | More Limited |
| Diversification | Higher | Lower |
Including small-cap companies expands the investment universe and provides more complete exposure to global equity markets.
MSCI ACWI IMI ex USA ex China ex Hong Kong vs MSCI EAFE
Both benchmarks focus on international investing, but their market coverage differs significantly. The MSCI ACWI IMI ex USA ex China ex Hong Kong Index includes emerging markets and small-cap stocks, while MSCI EAFE primarily focuses on developed markets.
| Feature | MSCI EAFE | MSCI ACWI IMI ex USA ex China ex Hong Kong |
|---|---|---|
| U.S. Excluded | Yes | Yes |
| China Excluded | Yes | Yes |
| Emerging Markets | No | Yes |
| Small-Cap Stocks | No (unless EAFE IMI) | Yes |
| Coverage | Developed Markets | Developed + Emerging Markets |
Investors seeking wider geographic diversification may prefer the broader market coverage offered by this benchmark.
Benefits of This Index
Diversification is one of the biggest strengths of the MSCI ACWI IMI ex USA ex China ex Hong Kong Index. Instead of relying on a single country or region, it spreads investments across thousands of companies operating in multiple developed and emerging markets.
Key advantages include:
- Broad international diversification
- Reduced overlap for investors who already own U.S. stocks
- Exposure to emerging markets outside China
- Inclusion of large-, mid-, and small-cap companies
- More comprehensive market coverage than many traditional international benchmarks
- Suitable as a benchmark for globally diversified investment portfolios
These characteristics make the index a valuable reference point for investors looking to build a balanced international equity allocation.
Potential Limitations Investors Should Understand
Every investment benchmark has strengths and trade-offs. The MSCI ACWI IMI ex USA ex China ex Hong Kong Index delivers broad international diversification, but it may not align with every investment strategy or portfolio objective.
Key limitations include:
- No exposure to the U.S., one of the world’s largest equity markets
- No direct investment in China or Hong Kong companies
- Returns may be affected by currency fluctuations
- Emerging markets can be more volatile than developed markets
- Small-cap companies may experience larger price swings during market downturns
Considering these limitations alongside the benefits helps investors determine whether the benchmark fits their long-term investment goals.
Risks of This Index
Even a well-diversified benchmark carries investment risk. The MSCI ACWI IMI ex USA ex China ex Hong Kong Index is exposed to several factors that can influence returns during different market conditions.
Key risks include:
- Market Risk: Share prices may decline because of economic slowdowns, inflation, interest-rate changes, or investor sentiment.
- Currency Risk: Exchange-rate movements can affect returns for investors using different base currencies.
- Emerging-Market Risk: Political, regulatory, and liquidity risks are generally higher in emerging markets.
- Sector Concentration Risk: Financials and information technology represent significant portions of the benchmark.
- Exclusion Risk: The benchmark may lag broader global indexes during periods when U.S., China, or Hong Kong markets outperform.
- Small-Cap Risk: Smaller companies may experience greater volatility and lower trading liquidity.
Who May Use This Index?
Different investors have different diversification goals. The MSCI ACWI IMI ex USA ex China ex Hong Kong Index may be suitable for those seeking broad international equity exposure while intentionally excluding selected markets.
It may be appropriate for:
- Long-term investors building globally diversified portfolios
- Retirement plans seeking an international benchmark
- Institutional investors with China-exclusion policies
- Investors who already hold significant U.S. equity investments
- Portfolio managers wanting developed- and emerging-market exposure in one benchmark
The benchmark is generally better suited to investors with a long-term investment horizon rather than those seeking short-term market opportunities.
Example of How Investors May Use This Index
Imagine an investor who already owns a broad U.S. stock market fund through a retirement account. Instead of adding another global fund with overlapping U.S. exposure, they may choose an investment product that tracks the MSCI ACWI IMI ex USA ex China ex Hong Kong Index to strengthen the international portion of their portfolio while reducing duplication.
This example is provided for educational purposes only and should not be interpreted as investment advice or a recommended portfolio allocation.
Who Should Avoid This Index?
No benchmark is ideal for every investor. The MSCI ACWI IMI ex USA ex China ex Hong Kong Index may be less suitable for investors whose objectives require complete global market exposure or a different regional focus.
It may not be the best choice for investors who:
- Want exposure to U.S. equities within the same benchmark
- Prefer direct investment in China or Hong Kong markets
- Focus exclusively on developed-market investments
- Have a low tolerance for stock-market volatility
- Need short-term capital preservation instead of long-term growth
Selecting an investment benchmark should always reflect your financial objectives, diversification strategy, and overall risk tolerance.
Is This Index Good for Long-Term Investors?
Long-term investing is often built on diversification rather than short-term market movements. The MSCI ACWI IMI ex USA ex China ex Hong Kong Index supports this approach by providing exposure to thousands of companies across developed and emerging markets while maintaining a clearly defined regional allocation.
Although short-term performance may fluctuate, the benchmark is primarily designed as a strategic tool for long-term international equity investing rather than short-term market timing.
Performance Overview
Performance is only one part of evaluating an investment benchmark. According to MSCI’s latest factsheet, the MSCI ACWI IMI ex USA ex China ex Hong Kong Index delivered positive returns across multiple historical periods, including one-, three-, and five-year time frames. However, past performance does not guarantee future results.
Before investing in any ETF or fund linked to this benchmark, investors should evaluate country exposure, sector allocation, fees, tracking accuracy, portfolio holdings, and how the investment fits within their overall asset allocation strategy.
Index vs ETF vs Mutual Fund
An index measures market performance—it is not an investment you can buy directly. The MSCI ACWI IMI ex USA ex China ex Hong Kong Index serves as a benchmark, while ETFs, mutual funds, and other investment products are designed to track or replicate its performance.
Investors typically gain exposure through:
- Exchange-Traded Funds (ETFs)
- Index Mutual Funds
- Institutional Investment Funds
- Pension Funds
- Retirement Investment Plans
Although these products may follow the same benchmark, their returns can vary because of management fees, portfolio construction, tracking error, and operating costs.
How Investors Can Get Exposure
Accessing this benchmark usually means investing in a fund rather than the index itself. Before choosing a product linked to the MSCI ACWI IMI ex USA ex China ex Hong Kong Index, compare more than just historical returns.
Important factors to review include:
- Expense ratio
- Tracking error
- Portfolio holdings
- Country allocation
- Sector allocation
- Currency exposure
- Fund provider
- Tax treatment
- Liquidity
Even funds following the same benchmark may produce slightly different results because of fees, cash holdings, rebalancing methods, and investment strategies.
Common Mistakes to Avoid
Small misunderstandings can lead to poor investment decisions. The MSCI ACWI IMI ex USA ex China ex Hong Kong Index is often confused with other global benchmarks, so understanding its structure is essential.
Avoid these common mistakes:
- Assuming ACWI always includes the United States.
- Believing ex China means companies have no business exposure to China.
- Overlooking the separate exclusion of Hong Kong.
- Comparing it only with the S&P 500 instead of international benchmarks.
- Judging diversification solely by the top holdings rather than the entire portfolio.
Recognizing these differences makes it easier to compare investment products and build a portfolio that matches your objectives.
How Often Is the Index Reviewed?
Markets evolve continuously, and a benchmark must evolve with them. The MSCI ACWI IMI ex USA ex China ex Hong Kong Index undergoes regular reviews and rebalancing to maintain accurate representation of the eligible global equity market.
During these scheduled reviews, MSCI may:
- Add newly eligible companies
- Remove companies that no longer meet index requirements
- Update country and sector weights
- Reclassify companies by market capitalization
- Adjust free-float market capitalization
- Reflect mergers, acquisitions, spin-offs, and delistings
Regular maintenance helps keep the benchmark aligned with changing market conditions while ensuring it continues to represent its intended investment universe.
Why Regular Reviews Matter
Keeping a benchmark current is just as important as its original construction. The MSCI ACWI IMI ex USA ex China ex Hong Kong Index is periodically updated so that changes in company size, liquidity, and market structure are reflected over time.
For investors, this means funds tracking the benchmark can continue to represent the evolving international equity market rather than relying on outdated company or country allocations.
Investor Evaluation Checklist
Before selecting a fund that tracks this index, review the following:
- Compare the fund’s expense ratio.
- Check tracking error against the benchmark.
- Review country and sector allocations.
- Understand currency exposure.
- Confirm whether the fund uses full replication or sampling.
- Compare dividend treatment.
- Make sure the benchmark aligns with your long-term diversification strategy.
Evaluating these factors can help investors choose a product that better matches their objectives rather than relying on historical performance alone.
Conclusion
MSCI ACWI IMI ex USA ex China ex Hong Kong Index offers a unique approach to international investing by providing broad exposure to developed and emerging markets while excluding the United States, China, and Hong Kong. For investors looking to complement existing U.S. holdings or reduce exposure to selected markets, this benchmark can serve as a practical foundation for a globally diversified portfolio.
Before investing, compare the fund’s fees, portfolio holdings, tracking accuracy, and overall fit within your investment strategy—not just its past performance. Used as part of a disciplined long-term approach, the MSCI ACWI IMI ex USA ex China ex Hong Kong Index can be an effective benchmark for building diversified international equity exposure that aligns with your financial goals.
FAQs About MSCI ACWI IMI ex USA ex China ex Hong Kong Index
1. Is the MSCI ACWI IMI ex USA ex China ex Hong Kong Index market-cap weighted?
Yes. The MSCI ACWI IMI ex USA ex China ex Hong Kong Index uses a free-float adjusted market capitalization weighting methodology. Larger companies generally receive higher weights while maintaining broad exposure across thousands of eligible stocks.
2. Does the MSCI ACWI IMI ex USA ex China ex Hong Kong Index include dividend-paying companies?
Yes. Many companies within the index pay dividends. However, the index itself is a performance benchmark and does not distribute dividends. Dividend payments depend on the investment fund tracking the index.
3. Can ETFs tracking the MSCI ACWI IMI ex USA ex China ex Hong Kong Index have different returns?
Yes. Even if two ETFs follow the same benchmark, returns can vary because of expense ratios, portfolio sampling, trading costs, tracking error, taxes, and fund management strategies.
4. How often is the MSCI ACWI IMI ex USA ex China ex Hong Kong Index rebalanced?
MSCI generally reviews and rebalances the index during its scheduled index review cycles throughout the year. These reviews may update constituents, market-cap weights, and company classifications to reflect changing market conditions.
5. Does the MSCI ACWI IMI ex USA ex China ex Hong Kong Index include frontier markets?
No. The index focuses on eligible developed and emerging markets defined by MSCI. Frontier markets are not included unless MSCI reclassifies them into the eligible market universe.
6. Is the MSCI ACWI IMI ex USA ex China ex Hong Kong Index suitable for passive investing?
Yes. The index is commonly used as a benchmark for passive investment products such as ETFs and index funds that aim to replicate its long-term performance rather than outperform it.
7. What is the difference between tracking error and index performance?
Index performance reflects the benchmark itself, while tracking error measures how closely an ETF or fund follows that benchmark. Lower tracking error generally indicates closer performance to the index.
8. Can the MSCI ACWI IMI ex USA ex China ex Hong Kong Index change over time?
Yes. Companies, country weights, and sector allocations change as markets evolve. MSCI updates the benchmark through periodic reviews to ensure it continues to represent the eligible global equity market.
