Global investing lets you participate in the growth of leading companies around the world. Global equity indices offer a simple, structured way to access these markets and are commonly used as the foundation of diversified, long-term portfolios.
What you'll learn
In this article, you’ll learn
01.
What global equity indices are and how they work
02.
The differences between MSCI World, MSCI ACWI and FTSE All-World
03.
How global indices are built
04.
Why they support diversification
05.
How they can help with long-term investing
What are global equity indices?
Global equity indices track the performance of companies across many countries and regions. They are designed to reflect how large parts of the global stock market are performing, rather than focusing on a single country or sector.
This means one index can provide exposure to hundreds or even thousands of companies worldwide.
Overview of major global equity indices
Some of the most widely used global indices are:
- MSCI World – covers developed markets only
- MSCI ACWI (All Country World Index) – includes developed and emerging markets
- FTSE All-World – offers very broad global market coverage
All three indices aim to provide diversification across regions and sectors but differ in their geographic scope and number of companies.
Diversification does not fully protect against market risks.
Source:
MSCI World Index, 30 April 2026
How global indices are constructed
Global equity indices follow clear, rules-based methodologies. Most are weighted by market capitalisation, meaning larger companies have a greater impact on index performance. Indices are built using transparent rules and are reviewed regularly to reflect changes in global markets.
This structured approach helps ensure indices remain representative over time.
Why investors use global equity indices
Global indices can offer a simple way to diversify investments.
They allow investors to:
- Access multiple countries and regions
- Invest across sectors and industries
- Participate in global economic growth
Because of this broad exposure, global equity indices are often used as a core building block in long-term portfolios.
MSCI World vs. global indices with emerging market
A key difference between global indices is whether they include emerging markets.
- MSCI World = developed markets only
- MSCI ACWI / FTSE All-World = includes both developed and emerging markets
Including emerging markets can increase diversification and add potential growth opportunities, but it may also lead to higher short-term ups and downs.
Frequently asked questions
Conclusion and key takeaways
A structured way to invest globally
Global equity indices can offer a clear, structured approach to investing worldwide. By providing broad diversification and exposure to global growth, they can form a strong foundation for a long-term investment strategy.
01.
Global equity indices track companies across many countries
02.
MSCI World focuses on developed markets only
03.
MSCI ACWI and FTSE All-World include emerging markets
04.
These indices are commonly used for diversification and long-term investing
Ready to start investing?
Getting started with investing doesn t have to be complicated. With a clear plan and a long term perspective, even small steps can make a difference over time. Many investors begin with a few simple steps:
Define your goals
Consider what you want to achieve and how investing fits into your plans.
Open an investment account
You'll need an investing account with an online investment platform, bank or provider.
Choose a suitable investment approach
A diversified portfolio may include equities, bonds and ETFs.
Start investing regularly
Investing gradually over time can help manage market fluctuations.