Insight

How are the MSCI World and FTSE All-World indexes different?

11 May 2026
Invesco
Geographic globes in a store

Key takeaways

Stock market indexes

1

A stock market index tracks the performance of a set of stocks grouped by company size, country, industry, or some other factor.

MSCI World Index

2

The MSCI World Index follows 1,311 large and mid-capitalisation stocks from 23 developed countries around the world.

FTSE All-World Index

3

The FTSE All-World includes 4,264 large and mid-capitalisation stocks from nearly 50 developed and emerging markets.

Most stock market indexes are unique, even if they seem on their surface to cover the same financial ground. The MSCI World Index and the FTSE All-World Index both show how the global stock market is performing. But they do it in their own ways. Knowing their similarities and differences can help you make decisions about your portfolio.

What is a stock market index?

A stock market index tracks the performance of a certain set of stocks. Those stocks may be grouped by company size, country, industry, or some other factor. The specifications can be narrow or broad. The list can be short or long. What matters is that the companies fit within the parameters outlined and those parameters remain consistent. Investors can’t invest directly in an index. But there are products, like exchange‑traded funds (ETFs), single investments that trade on stock exchanges and give exposure to a basket of assets, which aim to deliver investors the performance of a specified index, minus fees.

What is the MSCI World Index? What’s the FTSE All-World Index?
The MSCI World Index is a global stock market index that follows 1,311 stocks from 23 countries around the world. The FTSE All-World Index is a global stock market index that includes 4,264 stocks in nearly 50 countries. 

How are the MSCI World Index and FTSE All-World Index similar?

  • Both indexes are market-capitalisation weighted, which means the largest companies have the largest weight in the index.
  • Because the world’s big companies tend to be technology oriented, both indexes currently lean toward technology giants, as of March 2026.
  • They both invest in large‑capitalisation and mid‑capitalisation companies, meaning well‑established businesses with large market values, as well as medium‑sized companies that are still growing.
  • The US, Japan, and the UK are currently the highest-represented countries in each index, as of March 2026.

How are the MSCI World Index and FTSE All-World Index different?

The key difference is in their approach to investing in developed markets (countries with more advanced economies and more mature capital markets) and emerging markets (developing nations transitioning toward advanced economies).

  • The MSCI World only invests in developed markets. So, it doesn’t include companies from China, India, and Brazil, for example.
  • The FTSE All-World tracks both developed and emerging markets. This broader scope means that it invests in many more companies from many more countries than MSCI World.

Which approach is better?

There have been years when the MSCI World has outperformed, and years when the FTSE All-World outperformed. Emerging markets tend to be more volatile than developed markets and may present more political and economic instability. On the other hand, they can also experience periods of impressive growth through trends such as rapid industrialisation, expanding middle-class consumption, and a younger population. So, the answer to which approach is “better” will be unique to each client’s goals and risk tolerance.

Related insights

  • Investment risks

    For complete information on risks, refer to the legal documents. The value of investments, and any income from them, will fluctuate. This may partly be the result of changes in exchange rates. Investors may not get back the full amount invested.

    Invesco MSCI World UCITS ETF Acc

    The Fund’s ability to track the benchmark’s performance is reliant on the counterparties to continuously deliver the performance of the benchmark in line with the swap agreements and would also be affected by any spread between the pricing of the swaps and the pricing of the benchmark. The insolvency of any institutions providing services such as safekeeping of assets or acting as counterparty to derivatives or other instruments, may expose the Fund to financial loss. The value of equities and equity-related securities can be affected by a number of factors including the activities and results of the issuer and general and regional economic and market conditions. This may result in fluctuations in the value of the Fund. The Fund might purchase securities that are not contained in the reference index and will enter into swap agreements to exchange the performance of those securities for the performance of the reference index. The Fund’s performance may be adversely affected by variations in the exchange rates between the base currency of the Fund and the currencies to which the Fund is exposed. The Fund is invested in a particular geographical region, which might result in greater fluctuations in the value of the Fund than for a fund with a broader geographical investment mandate.

    Invesco FTSE All-World UCITS ETF Acc

    The Fund may be exposed to the risk of the borrower defaulting on its obligation to return the securities at the end of the loan period and of being unable to sell the collateral provided to it if the borrower defaults. The value of equities and equity-related securities can be affected by a number of factors including the activities and results of the issuer and general and regional economic and market conditions. This may result in fluctuations in the value of the Fund. The Fund’s performance may be adversely affected by variations in the exchange rates between the base currency of the Fund and the currencies to which the Fund is exposed. The Fund may use Stock Connect to access China A Shares traded in Mainland China. This may result in additional liquidity risk and operational risks including settlement and default risks, regulatory risk and system failure risk.

    Important information

    Data as at 30.04.26, unless otherwise stated. 

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