Morgan Stanley

ETF Assets Tracking MSCI Indices Now Exceed USD 50 Billion

Oct 31, 2005

MSCI Barra is second largest index provider for index-linked ETF products

New York —

MSCI Barra, a leading provider of benchmark indices and risk management analytics products, is pleased to announce that assets in Exchange Traded Funds (ETFs) based on MSCI Equity Indices now exceed USD 50 Billion. To date, there are over 70 ETFs based on MSCI Equity Indices trading in the U.S., Europe and Asia. In the U.S., the MSCI International Equity Indices are the target indices for 30 ETFs with USD 47 billion in assets (as of October 4, 2005). In addition, the MSCI US Equity Indices form the basis of 18 ETFs with a total of USD 8.5 billion in assets.

"MSCI Equity Indices are being increasingly used as the basis of ETFs. This growth is based on MSCI Barra's longstanding position as the leading provider of international indices, and on our comprehensive suite of indices, which allow investors to allocate assets across regions and asset classes with a globally consistent approach. In addition MSCI Barra's use of investability screens are designed to enable ETF providers and others to track the index with relatively low costs," said Rabbe Ekholm, Managing Director at MSCI Barra. This increasing adoption of MSCI Indices is demonstrated by several facts:

  • MSCI International Equity Indices now form the basis of 90% of international equity ETF assets in the U.S.
  • In September 2005, the ETF tracking the MSCI EAFE® Index became the world's second largest ETF
  • Six of the top 10 ETFs launched in the U.S. in 2004 are based on MSCI US Equity Indices

About MSCI Barra


MSCI ( develops and maintains equity, REIT, fixed income, multi-asset class and hedge fund indices that serve as the benchmark for an estimated USD 3 trillion on a worldwide basis and owns Barra, Inc. ("Barra"). Barra analytics ( help the world's largest investors analyze, measure and manage portfolio and firm-wide investment risk. MSCI Barra is headquartered in New York, with research and commercial offices around the world. Morgan Stanley, a global financial services firm and a market leader in securities, asset management, and credit services, is the majority shareholder of MSCI, and Capital International Inc., part of the global investment management group of The Capital Group Companies, Inc., is the minority shareholder. MSCI Barra is a service mark of Morgan Stanley Capital International Inc. ("MSCI" or "MSCI Barra").

For further information on MSCI indices or MSCI data, please visit our web site at or contact:

Dorsey Horowitz, MSCI Barra, New York   + 1 212 762 5790
Sonal Patel, MSCI Barra, London   + 44 20 7425 6660
Sarah Chan, MSCI Barra, Hong Kong   + 852 2848 6740
Masao Ikeda, MSCI Barra, Tokyo   + 813 5424 5470
Ben Curson/Clare Rowsell, Penrose Financial, London   + 44 20 7786 4888
Ann Taylor Reed, Abernathy MacGregor, New York   + 1 212 371 5999


The information contained in this document, including all text, data, graphs, charts and all other information (collectively, the "Information") is the property of Morgan Stanley Capital International Inc. (MSCI) and is provided for informational purposes only. Any use of MSCI indices, data or other information requires a license from MSCI. The Information may not be used to verify or correct other data, to create indices, or in connection with offering, sponsoring, managing or marketing any securities, portfolios, financial instruments or products. None of the Information constitutes an offer to buy or sell, or a promotion or recommendation of, any security, financial instrument or product or trading strategy, and MSCI does not endorse, approve or otherwise express any opinion regarding any issuer, securities, financial instruments or products or trading strategies that may be described or mentioned herein. Further, none of the Information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. The user of the Information assumes the entire risk of any use it may make or permit to be made of it. NEITHER MSCI, ANY OF ITS AFFILIATES OR ANY OTHER THIRD PARTY INVOLVED IN MAKING OR COMPILING ANY OF THE INFORMATION MAKES ANY EXPRESS OR IMPLIED WARRANTIES OR REPRESENTATIONS WITH RESPECT TO THE INFORMATION (OR THE RESULTS TO BE OBTAINED BY THE USE THEREOF), AND MSCI, ITS AFFILIATES AND EACH SUCH OTHER THIRD PARTY HEREBY EXPRESSLY DISCLAIM ALL IMPLIED WARRANTIES (INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTIES OF ORIGINALITY, ACCURACY, TIMELINESS, NON-INFRINGEMENT, COMPLETENESS, MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE) WITH RESPECT TO ANY OF THE INFORMATION. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any other third party involved in making or compiling any of the Information have any liability regarding any of the Information for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.


Morgan Stanley Capital International, MSCI®, ACWI, EAFE®, Barra®, MSCI Barra and all other service marks referred to herein are the exclusive property of MSCI or its affiliates, except as provided below. All MSCI indices are the exclusive property of MSCI and may not be used in any way without the express written permission of MSCI. The Global Industry Classification Standard (GICS) was developed by and is the exclusive property of MSCI and Standard & Poor's. "Global Industry Classification Standard (GICS)" is a service mark of MSCI and Standard & Poor's.