MSCI KLD 400 Social Index explained

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:

KLD follows the rules of the FTSE AWD USA Index.

The following types of equities are not eligible for the KLD400:

In 2010, it was renamed from FTSE KLD 400 Social Index to MSCI KLD 400 Social Index.[1]

Sector representation

The GICS breakdown is shown here. The index is highly concentrated - ie Information Technology makes up over 39% of the total market capitalization.

Total return (%) for each calendar year!Year!MSCI KLD 400 Social Index
201931.3
202020.8
202131.3
2022style="color:red"-21.7
202328.5

Selected constituents

Constituents which make up 70% of the total index weight.

Caption text
ConstituentSectorWeight (%)[2]
Abbvie IncHealth Care1.17
Accenture plc class AInformation Technology0.71
Adobe IncInformation Technology0.92
Advanced Micro Devices IncInformation Technology1.01
Alphabet Inc class ACommunication4.09
Alphabet Inc class cCommunication3.57
American ExpressFinancials0.51
Amgen IncHealth Care0.63
Analog Devices IncInformation Technology0.45
Applied Material IncInformation Technology0.77
Blackrock IncFinancials0.45
Blk csh fnd treasury sl agencyCash and/or Derivatives0.42
Booking Holdings IncConsumer Discretionary0.52
Bristol Myers SquibbHealth Care0.33
Caterpillar IncIndustrials0.63
Charles Schwab CorpFinancials0.43
Chubb LtdFinancials0.41
Cisco Systems IncInformation Technology0.73
CME Group Inc class AFinancials0.28
Coca-ColaConsumer Staples1
Colgate-PalmoliveConsumer Staples0.29
Danaher CorpHealth Care0.7
Eaton PlcIndustrials0.5
Elevance Health IncHealth Care0.49
Equinix REIT IncReal Estate0.28
FIS (company)Financials0.17
Gilead Sciences IncHealth Care0.32
Home Depot IncConsumer Discretionary1.35
Illinois Tool IncIndustrials0.28
Intel CorporationInformation Technology0.51
Intercontinental Exchange IncFinancials0.3
International Business Machines CoInformation Technology0.61
Intuit IncInformation Technology0.65
Johnson ControlsIndustrials0.18
Kimberly-ClarkConsumer Staples0.18
Lam Research CorpInformation Technology0.53
Linde PlcMaterials0.83
Lowes Companies IncConsumer Discretionary0.5
Mastercard Inc class AFinancials1.45
McDonald's CorpConsumer Discretionary0.72
Merck & Co IncHealth Care1.29
Microsoft CorpInformation Technology12.25
Morgan StanleyFinancials0.46
Nike Inc class BConsumer Discretionary0.44
Nvidia CorpInformation Technology12.93
Oracle CorpInformation Technology0.89
Pepsico IncConsumer Staples0.88
Phillips 66Energy0.23
Procter & GambleConsumer Staples1.54
Progressive CorpFinancials0.47
Prologis REIT IncReal Estate0.41
Quanta ServicesIndustrials0.16
Roper TechnologiesInformation Technology0.23
S&P Global IncFinancials0.55
Salesforce IncInformation Technology0.88
SempraUtilities0.19
Servicenow IncInformation Technology0.59
Sherwin WilliamsMaterials0.28
Tesla IncConsumer Discretionary2
Texas InstrumentsInformation Technology0.69
Trane Technologies plcIndustrials0.29
Union Pacific CorporationIndustrials0.53
Verizon Communications IncCommunication0.65
Vertex Pharmaceuticals IncHealth Care0.49
Visa Inc class AFinancials1.68
Walt DisneyCommunication0.72
XeroxInformation Technology0.01
Zoetis Inc class aHealth Care0.31

See also

External links

Notes and References

  1. http://www.msci.com/products/indexes/esg/announcement_july_1_2010.html Announcement July 1, 2010 - ESG Indexes - MSCI
  2. https://finance.yahoo.com/quote/DSI/holdings/?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAADqaoIYu4N5FyirctdJ_LQCa5Yi7X-dUvov0mC74Ymv54sV3pOsQC3nUF0wjuFfMnYwd9j9wgFkbs72Zh5fWBw-5w8jt8HSXykOK5oBR4lfngrv3rdl7wGJwWesMtctC1SbWVaL_jbfYvK4GtMWobITFsFbJTark3pPz4bx76grF

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