MSCI Inc. released the results of its November 2025 Index Review on November 5, 2025, with all constituent changes taking effect at the close of trading on November 24. The review covered a broad spectrum of MSCI equity benchmarks, including the ACWI, Small‑Cap, Investable Market, All‑Cap, and Frontier Markets indexes. The ACWI added 69 securities and removed 64, while the ACWI Small‑Cap added 207 and deleted 224. The ACWI Investable Market added 199 and removed 211. The World All‑Cap added 175 and removed 71, and the Frontier Markets index added eight and deleted two, with the Frontier Small‑Cap adding 29 and deleting nine. Bangladesh‑classified securities were left unchanged due to market accessibility constraints.
MSCI’s benchmarks are the de‑facto standards for passive and active investment products worldwide. When a constituent is added or removed, portfolio managers must rebalance, which can trigger significant capital flows into or out of the affected securities. These flows influence the assets under management that track MSCI indexes, directly affecting MSCI’s recurring licensing and data‑service revenue. The scale of the changes—hundreds of additions and deletions across multiple indexes—underscores the ongoing demand for MSCI’s methodology and the importance of maintaining investability standards.
The market reacted strongly to the review. MSCI’s own stock was trading higher, reflecting investor confidence in the continued relevance of its benchmarks. In India, Paytm’s inclusion in the MSCI Emerging Markets index lifted the stock 4.3%, while Fortis Healthcare, which was excluded, fell 1.1%. Analysts had estimated that the four Indian additions—Fortis, Paytm, GE Vernova T&D India, and Siemens Energy India—would generate roughly $1.46 billion in passive inflows, whereas the two exclusions were expected to produce outflows of about $300 million. The magnitude of these flows highlights the sensitivity of passive funds to index composition changes.
The review’s most visible additions came from the World and Emerging Markets segments. CoreWeave A (USA), Nebius Group A (Netherlands), and Insmed (USA) were the top three additions to the MSCI World index, while Barito Renewables Energy (Indonesia), Zijin Gold International (China), and GF Securities Co H (China) topped the Emerging Markets list. The small‑cap segment saw a stricter eligibility threshold, leading to a higher market‑capitalization requirement and a wave of deletions, particularly in the US and India. This shift reflects MSCI’s focus on investability and liquidity, ensuring that constituents can be efficiently traded by large institutional investors.
Comparing this review to the previous November 2024 cycle, the number of additions (69) and deletions (64) is similar, indicating a consistent level of portfolio turnover. The continued expansion of frontier markets—especially India and Vietnam—demonstrates MSCI’s strategy to capture growth in emerging economies. The review also maintained the same number of changes in the All‑Cap and Frontier segments, reinforcing MSCI’s commitment to providing comprehensive coverage across market capitalizations.
The implications for MSCI are twofold. First, the rebalancing flows generated by the index changes are likely to boost MSCI’s licensing revenue, as funds adjust their holdings to match the new index composition. Second, the review signals sustained demand for MSCI benchmarks, reinforcing the company’s dominant position in global finance. Headwinds include the stricter small‑cap criteria, which may reduce liquidity for certain stocks, while tailwinds arise from the growing weight of India and Vietnam, which are expected to attract additional passive capital. Overall, the review confirms MSCI’s role as a key driver of global investment flows and underscores the importance of its index methodology in shaping portfolio construction.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.