That makes sense: They represent more of the market and
the investable opportunity set.
Broad - based or market - cap - weighted indices represent the entire
investable opportunity set for market participants.
Stocks are free - float weighted to ensure that only
the investable opportunity set is included within the index.
They offer exhaustive coverage of
the investable opportunity set with non-overlapping size and style segmentation.
Collectively, they provide detailed equity market coverage for more than 80 countries across developed, emerging and frontier markets, representing 99 % of
these investable opportunity sets.