MicroStrategy enters MSCI ACWI Index, stock price surges 80% this year, outperforming Bitcoin by far.
Major index provider MSCI announced the addition of Microstrategy to the MSCI ACWI index, effective on 5/31. Bloomberg ETF analyst Eric Balchunas indicated that ACWI is highly regarded among institutions, making the impact significant.
MSCI just announced it is adding Microstrategy, Pure Storage and Emcor to MSCI ACWI Index along w/ a bunch of other adds/drops. Pretty big deal as ACWI has a little over $4T benchmarked to it. Popular with institutions. $MSTR $PSTG $EME h/t @psarofagis pic.twitter.com/E4ZIhl449V
— Eric Balchunas (@EricBalchunas) May 14, 2024
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What is the MSCI ACWI Index?
MSCI ACWI Index is MSCI's global flagship stock index designed to track the performance of large and mid-cap stocks across the globe. The index covers 23 developed markets and 24 emerging markets, encompassing 2,840 constituents across 11 sectors, representing approximately 85% of the investable equity opportunities in each market.
Since 2009, the MSCI ACWI Index has performed similarly to the MSCI World Index, which includes only developed countries, but has outperformed the MSCI Emerging Markets Index. The top ten holdings of the MSCI ACWI Index include Microsoft, Apple, Nvidia, and Taiwan Semiconductor Manufacturing Company.
MicroStrategy Stock Automatically Enters Portfolios, Price Surges Over 4%
As reported previously, with MicroStrategy's market value continuously rising, discussions have begun about the possibility of MicroStrategy being included in the S&P 500 Index! Once included in the S&P 500 Index, Bitcoin will begin to "automatically seep into all portfolios," including traditional 401k plans, retirement funds, and the hands of many passive investors.
If MicroStrategy is included in the S&P 500 Index, will millions of passive investors buy Bitcoin?
As more people adopt passive index investing, similar to Taiwan's recent trend with stock 00940, if a stock is included in a major index, it will "automatically seep into many portfolios" and become an important reference target for institutional investors. Although the price of Bitcoin did not see significant changes yesterday, MicroStrategy's stock price surged by 4.15% on this news, up 87% year-to-date, significantly higher than Bitcoin's 45% increase.
