Historical data of the MSCI World Index: Performance & returns

The MSCI World Index can be seen as a barometer of the global stock market, giving investors a snapshot of the performance of companies in developed countries.

Created by Morgan Stanley Capital International (today simply MSCI), the index has evolved over the years, capturing crucial market trends and shifts in investor sentiment.

In this article, we explain what the index is, how it has performed, what it holds and how you can invest in it.

Quick facts about the MSCI World Index performance

• From December 29, 2000, until August 31, 2026, the index had an annualised net return of 7.53% in USD (6.64% in EUR);
• US inflation has averaged around 2.5% a year since 2000;
• The maximum drawdown was during the Great Financial Crisis, when the index fell 57.82% in USD between October 2007 and March 2009;
• Over the last 10 years, the index had an annualised standard deviation of 14.86% (in USD);
• The index is heavily exposed to the US, with a weight of 72.14%.

Source: MSCI World Index factsheet, data as of August 31, 2026.

What is the MSCI World Index?

The MSCI World Index is a developed markets equity benchmark with 1,280 large and mid cap companies from 23 developed countries, covering around 85% of each country’s free float-adjusted market capitalisation.

The 23 countries are Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the UK and the US. Emerging markets such as China, India or Taiwan are not included.

MSCI World Index performance (risk and return)

From the MSCI website, you can extract MSCI World Index data in USD from December 31st, 1969. However, the index was only launched on March 31st, 1986, which means that the data before that date is backtested: a calculation of how the index might have performed if it had existed.

We present the MSCI World Index performance according to the following notes:

1. We only use real (not backtested) data, since a backtest is always a backtest;
2. The performance is shown in two currencies, USD and EUR, always as net returns (after withholding taxes on dividends), which is what an ETF can realistically replicate. MSCI publishes net returns from December 29th, 2000;
3. We use a base value of 100, which is the same as imagining that you invested $100 or €100 on December 29th, 2000.

MSCI World Index net performance (USD):

MSCI World Index: yearly net returns (USD)

Over the last 10 years, the MSCI World Index has delivered an annualised net return of 13.01% in USD, which means that $100 invested on August 31st, 2016, would be worth around $340 on August 31st, 2026.

If 10 years is not a long enough period for you, we can go back to December 29th, 2000, and get an annualised net return of 7.53%. So, $100 invested at the end of 2000 would be worth around $645 on August 31st, 2026. That’s well above US inflation, which has averaged around 2.5% a year since 2000, according to the US Bureau of Labor Statistics.

MSCI World Index: risk

Returns only tell half the story. Over the last 10 years, the MSCI World Index had an annualised standard deviation of 14.86% in USD, which, combined with its returns, gives a Sharpe ratio of 0.74 (the higher, the better).

The maximum drawdown was during the Great Financial Crisis, when the index fell 57.82% in USD between October 31st, 2007, and March 9th, 2009.

Are you a European investor? If so, you are probably more interested in the MSCI World performance in EUR. There you go:

MSCI World Index net performance (EUR):

MSCI also publishes a factsheet in EUR (net returns).

Over the last 10 years, the MSCI World Index in EUR has delivered an annualised net return of 12.53%, meaning that €100 invested on August 31st, 2016, would be worth around €326 on August 31st, 2026.

Since December 29th, 2000, the annualised net return in EUR is 6.64%. Hence, €100 invested at the end of 2000 would be worth around €521 on August 31st, 2026, well above euro area inflation, which has averaged a little over 2% a year in the same period.

In EUR, the index was less volatile (10-year standard deviation of 13.45%) and its maximum drawdown was 53.60%, between May 2001 and March 2009. The difference to USD comes from the exchange rate: 2025 is a good example, with a 21.09% return in USD but only 6.77% in EUR, because the dollar lost value against the euro.

MSCI World Index: yearly net returns (EUR)

Are these “real” returns for any investor?

Short answer: no. You cannot invest directly in the MSCI World Index, so those figures don’t apply to you as an investor. However, you can invest in ETFs that replicate the MSCI World Index at a low cost, getting very close to the index performance (minus fees and small tracking differences).

Here are the 8 largest ETFs replicating the MSCI World Index that European investors can buy, ordered by fund size:

Using the factsheet of the largest ETF in the table, the iShares Core MSCI World UCITS ETF USD (Acc), you can see that the ETF performance is tied to the index (the lines almost overlap). In 2025, for example, the ETF returned 21.16% in USD against 21.09% for the index:

Note: the ETF was launched in September 2009, so the chart starts at that date.

Sector allocation

The sector exposure of the MSCI World Index is broad. All 11 sectors of the Global Industry Classification Standard (GICS®), developed by MSCI and S&P Global, are present in the index, although information technology alone weighs almost 30%:

Geographical allocation

The index is heavily exposed to the US, with a weight of 72.14%:

Nonetheless, remember that the country weights only reflect where the 1,280 companies in the index are based, not where they sell their products or services. So, 72% in the US does not mean 72% exposure to the US economy.

We couldn’t find this breakdown for the MSCI World Index itself (only this article from Visual Capitalist). Still, using the S&P 500 Index as a reference, which only includes US-based companies, around 70% of its revenue comes from the US, so you are more diversified than the country weights suggest:

Top 10 holding companies

Do you have exposure to any particular “factor”?

In the book “Your Complete Guide to Factor-Based Investing”, the authors present academic studies and empirical data showing that stocks with certain characteristics have earned above-average risk-adjusted returns over time. Some of these factors are value, momentum, quality and size. The MSCI World Index is relatively neutral on most of them, as the MSCI Factor Box below shows:

How to invest in the MSCI World Index?

After choosing the right ETF for you, you need a good ETF broker to invest in it. For this example, we will use the largest ETF replicating the MSCI World Index, the iShares Core MSCI World UCITS ETF USD (Acc).

1. Our ETF brokers selection

Just as important are the fees, the minimum deposit, the number of ETFs available and the regulators. Our summary:

2. Place a “Buy Order”

Once you have opened an account with an online broker and made your first deposit, you are ready to buy the iShares Core MSCI World UCITS ETF USD (Acc). All you have to do is find the ETF on your broker and place a buy order. For this example, we will use DEGIRO:

a) Search for the ETF (we will use “IWDA”):

b) Click “Buy”: two listings appear, one in EUR and another in USD. As a European investor, the EUR listing saves you currency conversion fees. Select it and click “BUY” to open the order window shown on the right:

c) Choose the order details. Fill in the boxes below (“BUY” and “Day order” appear by default):

• Type of order: “Limit” appears by default, which means you set the maximum price you are willing to pay. You can change it to “Market order” to buy at the current market price;
• Limit amount: if you keep the “Limit” order, enter that maximum price in the box after “Limit (€)”;
• Quantity: enter the number of units you want to buy;
• Amount: the “Amount (€)” is filled in automatically once “Limit (€)” and “Quantity” are set.

d) Place the order: click “Place Order” and a new window appears, where you can check all the details before clicking “Confirm”:

Tools to further analyse the performance of the MSCI World Index

If you want to explore the MSCI World Index further, we recommend the following resources:

MSCI

The first one is, of course, the creator of the index. In the MSCI World Index section, you will find resources we used to write this article, such as the market allocation, how the index was built, a comparison with other indices and a chart with its daily performance. From there, you can also get the factsheet and a detailed analysis of its historical performance.

Portfolio Analyser

Portfolio Analyser is our in-house tool to compare different ETFs. Using the iShares Core MSCI World UCITS ETF USD (Acc), you can see how an investment in this ETF would have performed over time, along with its annual returns and drawdowns.

Bottom line

Since its launch in 1986, the MSCI World Index has gone through several economic cycles, market crashes and recoveries. From the end of 2000 to August 2026, it returned 7.53% a year in USD and 6.64% a year in EUR (net), well above inflation, despite drawdowns of more than 50%.

The MSCI World Index gives you broad exposure to developed markets, which helps reduce home bias. Keep in mind that it is heavily weighted towards the US (72%) and the technology sector (30%).

The index doesn’t include emerging markets. Its companies earn part of their revenue there, but that is not the same as holding emerging market stocks: in the 12 months to August 2026, for example, the MSCI Emerging Markets Index returned 39.25% in USD, against 20.37% for the MSCI World. If you want that exposure, you can combine an MSCI World ETF with an emerging markets ETF, or choose an ETF on the MSCI ACWI, which covers both.

Are you planning to invest in the MSCI World Index? You can explore the best trading platforms in Europe or use our BrokerMatch tool.