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The MSCI KLD 400 Social Index was launched in 1990 and is designed to help socially conscious investors weigh social and environmental factors in their investment choices. It was founded by KLD's Amy Domini as the Domini 400 Social Index.
The MSCI KLD 400 Social Index is designed to provide exposure to the common stocks of companies that KLD determines have positive environmental, social and corporate governance (ESG) characteristics. The KLD400 consists of 400 companies drawn from the universe of the 3,000 largest U.S. public equities as measured by float-adjusted market capitalization. The index is composed approximately 90% of large cap companies, 9% mid cap companies chosen for sector diversification, and 1% small cap companies with exemplary social and environmental records.
The eligible universe for the KLD400 is the 3,000 largest U.S. companies (by float-adjusted market capitalization) in the U.S. equity market. KLD selects the eligible universe index on April 15 (or closest business day) of each year.
KLD defines U.S. equity as follows:
- U.S. headquarters
- Primary market listing is the NYSE or NASDAQ
- Companies with non-U.S. incorporation for tax or regulatory purposes are evaluated on a case-by-case basis
KLD follows the rules of the FTSE AWD USA Index.
The following types of equities are not eligible for the KLD400:
- Preferred stocks
- Limited or other types of partnerships
- Royalty trusts
- Closed-end funds
In 2010, it was renamed from FTSE KLD 400 Social Index to MSCI KLD 400 Social Index.[1]
Sector representation
editThe GICS breakdown is shown here. The index is highly concentrated - ie Information Technology makes up over 39% of the total market capitalization.
| Year |
MSCI KLD 400 Social Index |
|---|---|
| 2019 | 31.3 |
| 2020 | 20.8 |
| 2021 | 31.3 |
| 2022 | -21.7 |
| 2023 | 28.5 |
Top 10 Constituents by index weight
edit| Constituent | Weight (%)[3] |
|---|---|
| Microsoft Corp | 11.65 |
| NVIDIA | 9.05 |
| Alphabet Inc A | 4.08 |
| Alphabet Inc C | 3.6 |
| Tesla, Inc. | 2.22 |
| Visa Inc. | 1.80 |
| Procter & Gamble | 1.63 |
| Mastercard Inc. | 1.60 |
| Home Depot, Inc. | 1.41 |
| Merck & Co | 1.39 |
See also
editReferences
edit- ^ Announcement July 1, 2010 - ESG Indexes - MSCI
- ^ https://www.blackrock.com/us/individual/products/239667/ishares-msci-kld-400-social-etf
- ^ https://finance.yahoo.com/quote/DSI/holdings/?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAADqaoIYu4N5FyirctdJ_LQCa5Yi7X-dUvov0mC74Ymv54sV3pOsQC3nUF0wjuFfMnYwd9j9wgFkbs72Zh5fWBw-5w8jt8HSXykOK5oBR4lfngrv3rdl7wGJwWesMtctC1SbWVaL_jbfYvK4GtMWobITFsFbJTark3pPz4bx76grF
External links
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