Last updated on March 5th, 2022

You may have seen ETFs that track these different indices: the S&P 500 and MSCI World Index. Most people may tell you that the MSCI World Index is more globally diversified. How are these 2 indices different and which should you invest in? Here’s what you need to know:

The difference between MSCI World Index and S&P 500

The MSCI World Index includes more than 1,500 large and mid cap companies from 23 developed countries. Meanwhile, the S&P 500 contains the top 500 large cap companies from the USA. As such, the MSCI World Index provides greater diversification. Here is an in-depth comparison between these 2 indices:

Country diversification

The countries that are available in both indexes are quite different.

The MSCI World Index has a more diversified portfolio

The MSCI World Index includes both large and mid cap stocks...