Why did MSCI create a Sector index?

MSCI has developed a wide range of sector and industry indexes, across regions and countries, to support sector allocation decisions and to allow institutional investors to incorporate tactical views into their portfolios. How did MSCI create a Sector classification framework?

What are examples of sector indices?

Examples of sector indices are: energy, services, healthcare, consumer products, industrial, materials, utilities, technology & communications and financial. Global Industry Classification Standard (GICS): this was created by Morgan Stanley Capital International (MSCI) and Standard & Poor's in 1999.

What are Sector Classifications?

Sectors are groups of stocks that share common characteristics in terms of the products or services they provide, but also in terms of business models and how they generate revenue. Sector classifications are non-overlapping so a company can only be assigned to one sector, allowing for a complete building block approach to an investment universe.

What are GICs® cyclical and defensive sectors indexes?

These indexes are constructed by aggregating select GICS® sub-industries. MSCI’s Cyclical and Defensive Sectors Indexes are designed to track the performance of the opportunity set of global cyclical and defensive companies across various GICS® sectors.