Morningstar Market Indexes
The Most Comprehensive View of the Investable US Equity Market
Key Features
Morningstar Market Indexes
The methodology behind the indexes is designed to balance broad market representation with the realities of portfolio management and has proved capable of underpinning investment products operating at some of the largest asset levels in the industry. The scale of assets linked to the indexes, now exceeding $3 trillion, demonstrates that broad market representation and tracking efficiency are not competing objectives.
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| Flexible The indexes expand and contract with the market, using market cap percentages rather than fixed constituent counts to offer consistent, accurate representation of the market and its segments. | Investable Built to align with how professional managers actually invest and support investability at scale, the index methodology incorporates design elements to help minimize turnover and transaction costs. | Thoughtful Rooted in academic rigor, the indexes are constructed through a transparent, rules-based approach to deliver accurate market representation through research-led best practices. | ||
The Total Market. One Index.
The Morningstar US Total Market Index powers an ecosystem that connects a deep pool of millions of market participants with a broad range of investment applications. The parent index for the Morningstar Market Indexes, it is designed to represent 100% of the investable US equity market and provide the foundation for more targeted size, style, and sector indexes.
Size Breakpoints
Once the Morningstar US Total Market Index is defined, the market is divided into size segments to provide a clear view of capitalization trends and the relative performance of mega-, large-, mid-, small-, and micro-cap companies. The size indexes are built using market coverage targets rather than predetermined constituent counts. This flexible design allows each segment to maintain consistent and accurate representation as the number of listed securities and the level of market concentration change over time.
Analysis
Comprehensive, Accurate Representation. Investable Design.
The purpose of an index is not simply to represent the market. It is to provide a realistic foundation for investment decisions, portfolio construction, and performance evaluation. Achieving that objective requires balancing accurate market representation with practical investability.
Insights from the Leading Edge
We keep up with the evolving needs of investors in a way that only Morningstar can: by leveraging our heritage as a trusted provider of data and research.