5Mon·

Hello GQ community,


I am toying with the idea of investing my MSCI ACWI $ISAC (+1.2%) and my EUROPE STOXX 600 $n/a (+1.41%) ETF core with a small cap ETF.

While searching for a small cap ETF, I stumbled across the following indices and could not find satisfactory answers.


As far as I know, the ACWI and the STOXX 600 include industrialized and emerging markets but no small caps. I deliberately chose this at the beginning so that I could control the weighting of the small caps myself at a later or future date as required.


❓The MSCI World Small Cap includes the small caps from industrialized countries that had too small a market capitalization to be included in the MSCI World, right?


❓The MSCI Emerging Markets Small Cap comprises the small caps from emerging markets that had a market capitalization too small to be included in the MSCI Emerging Markets, correct?


❓I'm not really clear on the difference between MSCI World Small Cap and MSCI Emerging Markets Small Cap.

I would be very happy if you could explain this to me😁


❓Can you give me suggestions for a global small cap ETF? I would be grateful for any help.


Best regards and many thanks in advance🫶

4 Comments

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The MSCI World Small Cap Index should not include emerging markets. Otherwise it would be called "All World". According to the MSCI nomenclature, *World* only includes the industrialized countries.
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You can find good details on these two small caps at MSCI and ishares.

Essentially, the World Small Caps comprises the developed world with USA 60%, Japan12.2%, UK5.3%, CA3.8%, AUS3.4%, Sweden3%, DE1.6%, CH1.5%, FR1.3%, IT1.3% plus the rest

EM small caps India26.6%, TW22.2%, KOR13%, CHN8.2%, BRA4.2%, SaudiArab4%, SA3%, TH2.92% plus the rest

https://www.ishares.com/de/privatanleger/de/literature/fact-sheet/wsml-ishares-msci-world-small-cap-ucits-etf-fund-fact-sheet-de-de.pdf

https://www.ishares.com/de/privatanleger/de/literature/fact-sheet/iems-ishares-msci-em-small-cap-ucits-etf-fund-fact-sheet-de-de.pdf
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