US Stocks vs. The World

Loading...

Interpretation

What is the proportion of the US stock market to the global stock market? The ratio in the chart above divides the S&P 500 by the MSCI World Index. By definition, this ratio cannot grow forever. At some point, US stocks would simply make up 100% of global stocks. The chart shows that, since the financial crisis of 2008, US stocks have been outperforming the rest of the world.

Data Sources

Further information

S&P 500 vs. MSCI World Index

Loading...

Interpretation

The S&P 500 consists of 500 large US companies and captures approximately 80% of available market capitalization. Therefore, it is quite representative of the overall US stock market and moves almost identically to the Wilshire 5000. The MSCI World Index includes a collection of stocks of all the developed markets in the world, as defined by MSCI.
Both indices are capitalization-weighted and do not include dividends.

S&P 500 to ACWI Ratio

Loading...

Interpretation

The MSCI All Country World Index (MSCI ACWI) tracks stocks from 23 developed and 26 emerging markets countries. It consists of the MSCI World Index and the MSCI Emerging Markets Index. However, as of October 2020, emerging markets stocks are only weighted with 12.99%, whereas stocks from developed markets account for 87.01%. The USA make up 58.13%, followed by Japan (6.94%). The index is often used as a benchmark for the performance of global equity funds. Unfortunately, it only dates back to the year 1988.

Data Sources

Further information

S&P 500 vs. MSCI ACWI Index

Loading...

View More Charts