A 70/30 split (MSCI World / MSCI EM) historically improved risk-adjusted returns (Sharpe 0.55 vs 0.52) with only slightly higher volatility.
If you have ever browsed a brokerage account, looked at a passive ETF, or read a financial analyst’s report, you have likely encountered the term . It is the gold standard for developed-market equity exposure. But what does history tell us about this index? How would a $10,000 investment made in 1987 have fared through the dot-com bubble, the Global Financial Crisis, COVID-19, and the inflation shock of 2022?
The index launched just before the 1987 Black Monday crash (-23% in one month). This is a critical reminder: even diversified global equity can crash simultaneously. Recovery took 22 months. The early 1990s recession and Gulf War saw flat returns.
Msci World Backtest Jun 2026
A 70/30 split (MSCI World / MSCI EM) historically improved risk-adjusted returns (Sharpe 0.55 vs 0.52) with only slightly higher volatility.
If you have ever browsed a brokerage account, looked at a passive ETF, or read a financial analyst’s report, you have likely encountered the term . It is the gold standard for developed-market equity exposure. But what does history tell us about this index? How would a $10,000 investment made in 1987 have fared through the dot-com bubble, the Global Financial Crisis, COVID-19, and the inflation shock of 2022? msci world backtest
The index launched just before the 1987 Black Monday crash (-23% in one month). This is a critical reminder: even diversified global equity can crash simultaneously. Recovery took 22 months. The early 1990s recession and Gulf War saw flat returns. A 70/30 split (MSCI World / MSCI EM)