A Geographic Breakdown of the MSCI ACWI IMI

Published

8 months ago

September 16, 2021

Article/Editing:

Jenna Ross

The following content is sponsored by MSCI

MSCI ACWI IMI

A Geographic Breakdown of the MSCI ACWI IMI Index

How can investors track stock markets around the world?

Using the MSCI All Countries World Index Investable Market Index (MSCI ACWI IMI), investors can benchmark their portfolios to a comprehensive group of developed and emerging markets. With over $4.2 trillion in assets benchmarked to the ACWI—about 4% of all managed assets globally—the index is widely quoted.

In this graphic from MSCI, we explore a geographic breakdown of the MSCI ACWI IMI index, and how it has changed over time.

What is the MSCI ACWI IMI?

The MSCI ACWI IMI is a leading global equity index. It tracks the performance of a basket of securities that are intended to represent the entire global stock market. Altogether, it covers:

9,200 securities
23 developed markets
27 emerging markets
99% of the investable global equity market

Using a standardized approach, the index includes businesses of all sizes from small to large market capitalization.

Market Weights

The MSCI ACWI IMI Index is broken down into broad regions and specific markets, such as North America and the U.S. respectively. Below, we show the specific market weights of the index as of July 31, 2011 and July 31, 2021. We also show how much these weights have increased or decreased over the last 10 years.

Market	Region	2011 Weight	2021 Weight	Percentage Point Change
Canada	North America	4.74%	2.91%	-1.8 p.p.
U.S.	North America	43.34%	58.61%	15.3 p.p.
Austria	EMEA	0.16%	0.08%	-0.1 p.p.
Belgium	EMEA	0.39%	0.27%	-0.1 p.p.
Denmark	EMEA	0.42%	0.68%	0.3 p.p.
Finland	EMEA	0.37%	0.33%	0.0 p.p.
France	EMEA	3.50%	2.73%	-0.8 p.p.
Germany	EMEA	3.24%	2.31%	-0.9 p.p.
Ireland	EMEA	0.13%	0.18%	0.1 p.p.
Israel	EMEA	0.29%	0.26%	0.0 p.p.
Italy	EMEA	0.99%	0.67%	-0.3 p.p.
Netherlands	EMEA	0.92%	1.11%	0.2 p.p.
Norway	EMEA	0.42%	0.24%	-0.2 p.p.
Portugal	EMEA	0.10%	0.05%	-0.1 p.p.
Spain	EMEA	1.21%	0.61%	-0.6 p.p.
Sweden	EMEA	1.20%	1.20%	0.0 p.p.
Switzerland	EMEA	3.09%	2.47%	-0.6 p.p.
United Kingdom	EMEA	8.28%	3.99%	-4.3 p.p.
Argentina	EM	0.00%	0.02%	0.0 p.p.
Brazil	EM	1.86%	0.65%	-1.2 p.p.
Chile	EM	0.21%	0.06%	-0.2 p.p.
China	EM	2.32%	3.76%	1.4 p.p.
Colombia	EM	0.10%	0.02%	-0.1 p.p.
Czech Republic	EM	0.05%	0.01%	0.0 p.p.
Egypt	EM	0.05%	0.01%	0.0 p.p.
Greece	EM	0.10%	0.03%	-0.1 p.p.
Hungary	EM	0.05%	0.03%	0.0 p.p.
India	EM	1.01%	1.40%	0.4 p.p.
Indonesia	EM	0.39%	0.14%	-0.2 p.p.
Korea	EM	2.07%	1.67%	-0.4 p.p.
Kuwait	EM	0.00%	0.07%	0.1 p.p.
Malaysia	EM	0.44%	0.18%	-0.3 p.p.
Mexico	EM	0.55%	0.23%	-0.3 p.p.
Pakistan	EM	0.00%	0.01%	0.0 p.p.
Peru	EM	0.06%	0.02%	0.0 p.p.
Philippines	EM	0.09%	0.07%	0.0 p.p.
Poland	EM	0.23%	0.10%	-0.1 p.p.
Qatar	EM	0.00%	0.08%	0.1 p.p.
Russia	EM	0.85%	0.38%	-0.5 p.p.
Saudi Arabia	EM	0.00%	0.36%	0.4 p.p.
South Africa	EM	1.00%	0.44%	-0.6 p.p.
Taiwan	EM	1.63%	1.85%	0.2 p.p.
Thailand	EM	0.28%	0.22%	-0.1 p.p.
Turkey	EM	0.20%	0.05%	-0.1 p.p.
United Arab Emirates	EM	0.00%	0.09%	0.1 p.p.
Australia	Asia Pacific	3.34%	1.94%	-1.4 p.p.
Hong Kong	Asia Pacific	1.11%	0.79%	-0.3 p.p.
Japan	Asia Pacific	8.37%	6.22%	-2.2 p.p.
New Zealand	Asia Pacific	0.07%	0.09%	0.0 p.p.
Singapore	Asia Pacific	0.74%	0.32%	-0.4 p.p.

Note: numbers may not sum to 100 due to rounding. EM stands for Emerging Markets, and EMEA stands for Europe, Middle East, and Africa.

Over the last decade, the UK’s index weighting has halved. Brexit uncertainty caused British stocks to underperform relative to other markets. In addition, the UK’s public equity marketing has been shrinking, with the number of listed companies falling by 21% in just eight years.

Japan saw its weighting decline by more than two percentage points. The country has faced a very slow recovery since the asset price bubble in 1989, and the stock market has yet to surpass its previous peak.

On the other hand, China’s weighting in the MSCI ACWI IMI has increased over the last 10 years. This is primarily due to two factors:

China A shares, shares of mainland China based companies that are quoted in the local renminbi currency, were previously only available to domestic investors. China’s market reforms made them more widely accessible to international investors.
As accessibility and growth increased in the region, foreign investors expressed increased interest in the Chinese market. This drove up demand for the country’s stocks.

Perhaps the biggest takeaway from this data is the increasing dominance of the U.S. stock market, which now makes up almost 60% of the index. What implications does this have on the MSCI ACWI IMI index’s diversification?

Revenue Exposure of the MSCI ACWI IMI

As it turns out, the index is more diversified than it may seem at first glance. American companies have international operations, and earn revenue from many different markets. This makes the revenue exposure of the index much more spread out across each region.

Region	% of Revenue Exposure
EM	36.4%
North America	31.9%
EMEA	16.7%
Asia Pacific	12.0%
Other	3.1%

Note: numbers may not sum to 100 due to rounding. Countries included in Other are Bosnia and Herzegovina, Bangladesh, Burkina Faso, Bulgaria, Bahrain, Benin, Botswana, Cote D’Ivoire, Estonia, Ghana, Guinea-Bissau, Croatia, Iceland, Jamaica, Jordan, Kenya, Kazakhstan, Lebanon, Sri Lanka, Lithuania, Morocco, Mali, Mauritius, Niger, Nigeria, Oman, Palestine, Romania, Serbia, Slovenia, Senegal, Togo, Tunisia, Trinidad and Tobago, Ukraine, Vietnam and Zimbabwe.

On a revenue exposure basis, North America—where the U.S. is by far the largest market—has a weighting of just over 30%. Emerging markets take the top spot, making up over a third of the index’s revenue exposure. This presents an opportunity for investors, as these markets are projected to have higher GDP growth compared to North America.

Broad Exposure

For investors looking to capture the world’s stock market performance, the MSCI ACWI IMI can be a good benchmark. The index offers comprehensive and diversified exposure to various markets. Through regular reviews and rebalancing, it also adjusts to market movements. This ensures it continues to accurately reflect the composition of the global stock market over time.

While investors can’t invest in the index itself, they can invest in a product that tracks the index—and be poised to take advantage of opportunities around the globe.

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Ranked: Emissions per Capita of the Top 30 U.S. Investor-Owned Utilities

Roughly 25% of all GHG emissions come from electricity production. See how the top 30 IOUs rank by emissions per capita.

Published

1 week ago

May 16, 2022

Emissions per Capita of the Top 30 U.S. Investor-Owned Utilities

Approximately 25% of all U.S. greenhouse gas emissions (GHG) come from electricity generation.

Subsequently, this means investor-owned utilities (IOUs) will have a crucial role to play around carbon reduction initiatives. This is particularly true for the top 30 IOUs, where almost 75% of utility customers get their electricity from.

This infographic from the National Public Utilities Council ranks the largest IOUs by emissions per capita. By accounting for the varying customer bases they serve, we get a more accurate look at their green energy practices. Here’s how they line up.

Per Capita Rankings

The emissions per capita rankings for the top 30 investor-owned utilities have large disparities from one another.

Totals range from a high of 25.8 tons of CO₂ per customer annually to a low of 0.5 tons.

Utility	Emissions Per Capita (CO2 tons per year)	Total Emissions (M)
TransAlta	25.8	16.3
Vistra	22.4	97.0
OGE Energy	21.5	18.2
AES Corporation	19.8	49.9
Southern Company	18.0	77.8
Evergy	14.6	23.6
Alliant Energy	14.4	14.1
DTE Energy	14.2	29.0
Berkshire Hathaway Energy	14.0	57.2
Entergy	13.8	40.5
WEC Energy	13.5	22.2
Ameren	12.8	31.6
Duke Energy	12.0	96.6
Xcel Energy	11.9	43.3
Dominion Energy	11.0	37.8
Emera	11.0	16.6
PNM Resources	10.5	5.6
PPL Corporation	10.4	28.7
American Electric Power	9.2	50.9
Consumers Energy	8.7	16.1
NRG Energy	8.2	29.8
Florida Power and Light	8.0	41.0
Portland General Electric	7.6	6.9
Fortis Inc.	6.1	12.6
Avangrid	5.1	11.6
PSEG	3.9	9.0
Exelon	3.8	34.0
Consolidated Edison	1.6	6.3
Pacific Gas and Electric	0.5	2.6
Next Era Energy Resources	0	1.1

PNM Resources data is from 2019, all other data is as of 2020

Let’s start by looking at the higher scoring IOUs.

TransAlta

TransAlta emits 25.8 tons of CO₂ emissions per customer, the largest of any utility on a per capita basis. Altogether, the company’s 630,000 customers emit 16.3 million metric tons. On a recent earnings call, its management discussed clear intent to phase out coal and grow their renewables mix by doubling their renewables fleet. And so far it appears they’ve been making good on their promise, having shut down the Canadian Highvale coal mine recently.

Vistra

Vistra had the highest total emissions at 97 million tons of CO₂ per year and is almost exclusively a coal and gas generator. However, the company announced plans for 60% reductions in CO₂ emissions by 2030 and is striving to be carbon neutral by 2050. As the highest total emitter, this transition would make a noticeable impact on total utility emissions if successful.

Currently, based on their 4.3 million customers, Vistra sees per capita emissions of 22.4 tons a year. The utility is a key electricity provider for Texas, ad here’s how their electricity mix compares to that of the state as a whole:

Energy Source	Vistra	State of Texas
Gas	63%	52%
Coal	29%	15%
Nuclear	6%	9%
Renewables	1%	24%
Oil	1%	0%

Despite their ambitious green energy pledges, for now only 1% of Vistra’s electricity comes from renewables compared to 24% for Texas, where wind energy is prospering.

Based on those scores, the average customer from some of the highest emitting utility groups emit about the same as a customer from each of the bottom seven, who clearly have greener energy practices. Let’s take a closer look at emissions for some of the bottom scoring entities.

Utilities With The Greenest Energy Practices

Groups with the lowest carbon emission scores are in many ways leaders on the path towards a greener future.

Exelon

Exelon emits only 3.8 tons of CO₂ emissions per capita annually and is one of the top clean power generators across the Americas. In the last decade they’ve reduced their GHG emissions by 18 million metric tons, and have recently teamed up with the state of Illinois through the Clean Energy Jobs Act. Through this, Exelon will receive $700 million in subsidies as it phases out coal and gas plants to meet 2030 and 2045 targets.

Consolidated Edison

Consolidated Edison serves nearly 4 million customers with a large chunk coming from New York state. Altogether, they emit 1.6 tons of CO₂ emissions per capita from their electricity generation.

The utility group is making notable strides towards a sustainable future by expanding its renewable projects and testing higher capacity limits. In addition, they are often praised for their financial management and carry the title of dividend aristocrat, having increased their dividend for 47 years and counting. In fact, this is the longest out of any utility company in the S&P 500.

A Sustainable Tomorrow

Altogether, utilities will have a pivotal role to play in decarbonization efforts. This is particularly true for the top 30 U.S. IOUs, who serve millions of Americans.

Ultimately, this means a unique moment for utilities is emerging. As the transition toward cleaner energy continues and various groups push to achieve their goals, all eyes will be on utilities to deliver.

The National Public Utilities Council is the go-to resource to learn how utilities can lead in the path towards decarbonization.

The Road to Decarbonization: How Asphalt is Affecting the Planet

The U.S. alone generates ∼12 million tons of asphalt shingles tear-off waste and installation scrap every year and more than 90% of it is dumped into landfills.

Published

2 weeks ago

May 13, 2022

The Road to Decarbonization: How Asphalt is Affecting the Planet

Asphalt, also known as bitumen, has various applications in the modern economy, with annual demand reaching 110 million tons globally.

Until the 20th century, natural asphalt made from decomposed plants accounted for the majority of asphalt production. Today, most asphalt is refined from crude oil.

This graphic, sponsored by Northstar Clean Technologies, shows how new technologies to reuse and recycle asphalt can help protect the environment.

The Impact of Climate Change

Pollution from vehicles is expected to decline as electric vehicles replace internal combustion engines.

But pollution from asphalt could actually increase in the next decades because of rising temperatures in some parts of the Earth. When subjected to extreme temperatures, asphalt releases harmful greenhouse gases (GHG) into the atmosphere.

Emissions from Road Construction (Source)	CO2 equivalent (%)
Asphalt	28%
Concrete	18%
Excavators and Haulers	16%
Trucks	13%
Crushing Plant	10%
Galvanized Steel	6%
Reinforced Steel	6%
Plastic Piping	2%
Geotextile	1%

Asphalt paved surfaces and roofs make up approximately 45% and 20% of surfaces in U.S. cities, respectively. Furthermore, 75% of single-family detached homes in Canada and the U.S. have asphalt shingles on their roofs.

Reducing the Environmental Impact of Asphalt

Similar to roads, asphalt shingles have oil as the primary component, which is especially harmful to the environment.

Shingles do not decompose or biodegrade. The U.S. alone generates ∼12 million tons of asphalt shingles tear-off waste and installation scrap every year and more than 90% of it is dumped into landfills, the equivalent of 20 million barrels of oil.

But most of it can be reused, rather than taking up valuable landfill space.

Using technology, the primary components in shingles can be repurposed into liquid asphalt, aggregate, and fiber, for use in road construction, embankments, and new shingles.

Providing the construction industry with clean, sustainable processing solutions is also a big business opportunity. Canada alone is a $1.3 billion market for recovering and reprocessing shingles.

Northstar Clean Technologies is the only public company that repurposes 99% of asphalt shingles components that otherwise go to landfills.