Domini 400 Social Index
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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 Amy Lee Domini (born January 25, 1950) is an American investment adviser and author known for her work in social investing. Early life and education Amy Lee Domini was born on January 25, 1950, in New York City, to Margot Cabot (Colt), a t ...
as the Domini 400 Social Index. The
MSCI MSCI Inc. is an American finance company headquartered in New York City. MSCI is a global provider of equity, fixed income, real estate indexes, multi-asset portfolio analysis tools, ESG and climate products. It operates the MSCI World, MSCI ...
KLD 400 Social Index is designed to provide exposure to the
common stock Common stock is a form of corporate equity ownership, a type of security. The terms voting share and ordinary share are also used frequently outside of the United States. They are known as equity shares or ordinary shares in the UK and other Comm ...
s of companies that KLD determines have positive
environmental, social and corporate governance ESG (environmental, social, and corporate governance) data reflect the negative externalities (costs to others) caused by an organization with respect to the environment, to society and to corporate governance. ESG data can be used by investo ...
(ESG) characteristics. The KLD400 consists of 400 companies drawn from the universe of the 3,000 largest U.S. public
equities In finance, stock (also capital stock) consists of all the shares by which ownership of a corporation or company is divided.Longman Business English Dictionary: "stock - ''especially AmE'' one of the shares into which ownership of a company ...
as measured by float-adjusted market capitalization. The index is composed approximately 90% of
large cap Market capitalization, sometimes referred to as market cap, is the total value of a publicly traded company's outstanding common shares owned by stockholders. Market capitalization is equal to the market price per common share multiplied by t ...
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 A stock market, equity market, or share market is the aggregation of buyers and sellers of stocks (also called shares), which represent ownership claims on businesses; these may include ''securities'' listed on a public stock exchange, as ...
. KLD selects the eligible universe index on April 15 (or closest business day) of each year. KLD defines U.S. equity as follows: * U.S. headquarters * Primary market listing is the
NYSE The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District of Lower Manhattan in New York City. It is by far the world's largest stock exchange by market capitalization of its liste ...
or NASDAQ * Companies with non-U.S. incorporation for tax or regulatory purposes are evaluated on a case-by-case basis KLD follows the rules of the FTSE AWD USA Index. The following types of equities are not eligible for the KLD400: *
Preferred stock Preferred stock (also called preferred shares, preference shares, or simply preferreds) is a component of share capital that may have any combination of features not possessed by common stock, including properties of both an equity and a debt inst ...
s * Limited or other types of partnerships *
Royalty trust A royalty trust is a type of corporation, mostly in the United States or Canada, usually involved in petroleum, oil and gas production or mining. However, unlike most corporations, its profits are not taxed at the corporate level provided a certai ...
s * Closed-end funds In 2010, it was renamed from FTSE KLD 400 Social Index to MSCI KLD 400 Social Index.Announcement July 1, 2010 - ESG Indexes - MSCI
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See also

*
Calvert Social Index The Calvert Social Index is a stock market index created by Calvert Investments as a benchmark of large companies that are considered socially responsible or ethical. It currently consists of 680 companies, weighted by market capitalization, select ...
*
FTSE4Good Index The FTSE4Good Index Series is a series of ethical investment stock market indices launched in 2001 by the FTSE Group which reports on the performance of companies which demonstrate "strong Environmental, Social and Governance practices". A numbe ...


References


External links


MSCI KLD 400 Social Index Factsheet
American stock market indices Ethical investment stock market indices {{invest-stub