Reliable and comprehensive benchmarks are indispensable in a landscape where global diversification is at the forefront. The S&P World Index tracks the performance of large- and mid-cap stocks from 24 developed markets, providing a consistent universe for historical market analysis and implementation of investment strategies.

The S&P World Index was launched in 2009, building on the legacy of the S&P Global BMI (Broad Market Index). Currently, the S&P World Index encompasses over 1,500 companies, reflecting approximately 85% of the market capitalization of the developed markets included in the index.

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The index is constructed following a rules-based approach for size and liquidity. Companies must have a float-adjusted market cap of at least USD 100 million to be included in the index as of the annual rebalance in September. To ensure replicability, only liquid stocks are considered; companies must meet a 12-month median value traded ratio of 20% and a six-month median daily value traded of USD 0.25 million The large- and mid-cap stocks represent the top 85% of the local market’s total available capitalization. For further details about the index’s construction, please refer to the methodology.

As a co-founder of the Index Industry Association, S&P DJI adheres to industry best practices and evolving regulatory standards, reinforcing its role as a reliable and accurate benchmark provider for global market participants. The index methodology is reviewed regularly by an independent oversight committee, ensuring it evolves alongside market dynamics while maintaining its foundational principles.

Home bias—the tendency to invest predominantly in domestic equities—can limit diversification potential. The S&P World Index encompasses international equities from 24 developed countries, illustrating its comprehensive coverage (see Exhibit 2).

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Moreover, the S&P World Index offers diversified weight across sectors. Exhibit 3 summarizes the weights of the Global Industry Classification System (GICS^®) sectors for this benchmark.

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In order to provide benchmarks across the developed market opportunity set from targeted perspectives, the S&P World Index Series offers over 380 subindices that include sector, style and currency versions, as well as specific regional views (e.g., the S&P World Ex-U.S. Index).

In addition, the series includes sustainability-focused indices, such as the S&P World Scored & Screened Index, leveraging S&P DJI’s world-class sustainability datasets.

The S&P World Index is relevant to the passive investing conversation, as historic data suggest it’s difficult to outperform. SPIVA^® (S&P Indices Versus Active) U.S. Year-End 2024 Scorecard results show that over the past 15 years, the S&P World Index has performed better than 92.5% of the actively managed funds that aim to beat it, which is even higher than the 89.5% outperformance rate of the S&P 500.

In conclusion, the S&P World Index provides comprehensive coverage of developed market equities and is a world-class benchmark backed by the highest standards of quality and integrity offered by S&P DJI. In an upcoming blog, we will showcase the S&P World Ex-U.S. Index and its outperformance of U.S. equities during the start of 2025.

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