Measuring the performance of international currencies
The MSCI Global Currency Indices may be used as a tool to help investors manage foreign currency exposure in their international equity portfolio.
The MSCI Global Currency Indices are the first and only currency indices available that set the weights of each currency equal to the relevant country weight in a corresponding MSCI Equity Index. This unique approach to weighting the currencies allows creators of index-linked products to construct investment vehicles that can be used as an efficient and convenient way to enhance or hedge currency exposure to an MSCI Equity Index.
The MSCI Global Currency Indices can be calculated for most MSCI Emerging Markets and Developed Markets regional and composite indices, and can be constructed using USD, EUR and JPY base currencies. Other currencies are available on request.
Flagship indices at launch include:
| Developed Markets | Emerging Markets |
|---|---|
|
|
|
|
The MSCI Global Currency Indices can be used to:
- Better understand currency exposure within an equity portfolio
- Manage currency returns specific to MSCI Equity Indices
- Construct index-linked investment vehicles such as listed and OTC derivatives, ETFs, exchange traded notes (ETNs), and institutional and retail funds.
To find out more about the MSCI Global Currency Indices, please contact us.
