Index Insights: Stories from the May MSCI QCIR

In this edition of Index Insights, we explore what we expect to happen during the May 2023 MSCI Quarterly Comprehensive Index Review, including:

  • Finalizing changes to the quarterly index review process. The MSCI Global Investable Market Indexes (GIMI) transitioned to a quarterly comprehensive index review (QCIR) schedule as part of the February 2023 index review.1 However, changes to number of shares (NOS) and foreign inclusion factor (FIF) review criteria will be implemented at the May 2023 QCIR.
  • Heightened turnover in MSCI flagship market capitalization and Factor Indexes.2 Turnover is expected to increase in certain developed and emerging market MSCI Indexes, especially small cap indexes. Separately, certain MSCI Factor Indexes are expected to have notable additions and deletions which are expected to have significant impact on turnover levels.

Index providers, like MSCI or FTSE Russell, are responsible for constructing and monitoring a wide variety of indexes. 

During periodic reviews (or rebalances), index providers may make changes to their indexes. For example, a provider will remove securities that no longer meet the criteria for index inclusion as outlined in its methodology.

Unlike individual securities, indexes aren’t directly investable. Instead, investors use index funds, including index ETFs, which are designed to track the performance of designated indexes, less fees. Given the rise in usage of index funds, large amounts of assets now seek to track these indexes.3

That’s why it’s important for investors to monitor index rebalances. Updates to index holdings, like additions to, deletions from and weight changes within an index, may have a corresponding impact on iShares ETFs.4

For more information on these changes and their potential impact on the funds listed below, see the full report.

Samara Cohen

Samara Cohen

Managing Director, is the Chief Investment Officer of ETF and Index investments (EII) at BlackRock

Daniel Prince

Daniel Prince, CFA

U.S. Head of iShares product consulting and U.S. Head of iShares Core and Stylebox ETFs

Samantha Merwin, CFA


Alec Woodworth, CFA


Brian Goodwine, CFA