Largest Rebalance in MSCI Emerging Markets History

At the end of May, MSCI Emerging Markets will conduct their semi-annual index review and rebalance. As per usual, this process will create a certain amount of turnover in the index as companies are added and removed based on MSCI’s inclusion criteria. However, this rebalance is likely to be the largest one in the index’s history.

The scale of the rebalance stems from several changes being made to the index composition, with new countries getting added and weights of other countries increasing. The month of May tends to be a fairly large rebalance, as it is a semi-annual universe review, as well as being the Annual Full Country Float Review implementation. However, the extra changes on top of this could see this month’s rebalance be a record for one-way turnover.