MSCI to apply issuer capping on EM Islamic Index
Investing.comMonday, May 19, 2025 at 3:52:04 PM
** MSCI, a major global index provider, is introducing a new rule called "issuer capping" for its Emerging Markets Islamic Index. This means they'll limit how much weight any single company can have in the index, preventing any one issuer from dominating it. Think of it like a rebalancing act—spreading the influence more evenly across the index's components.
What This Means: ** If you're invested in or tracking Sharia-compliant emerging market funds, this change could tweak your portfolio's makeup. It’s not a seismic shift, but it’s a nudge toward diversification, which might reduce risk for some investors. For the broader market, it signals MSCI’s effort to keep these indices fair and balanced—something worth noting if you’re into Islamic finance or EM investing.
— Curated via WP Now’s AI editorial system
