In early December, global index provider MSCI launched a new range of strategic indexes that offer investors access to passive index-linked multifactor strategies.
MSCI is offering the MSCI Multi-Factor Indexes in standard combinations, but investors can also create customized blends according to their portfolio needs. Additionally, the methodology can be applied to core MSCI indexes such as the MSCI EAFE, MSCI ACWI, MSCI World and MSCI Emerging Markets.
Investors wishing to mix their strategies will also be able to use IndexMetrics, a custom-designed analytical tool from MSCI.
MSCI’s factor index family isolates for such factors as value, size, yield, quality, volatility and momentum. The newest additions to the series would allow investors to combine multiple factors and adjust the exposure to each one.