Tech Sector Dominates MSCI Indices and Bond Market
Technology now accounts for ~38% of the MSCI USA Index and ~44% of the MSCI EM Index, with shares surging in recent years. Tech's share of US investment-grade bond issuance has tripled to ~20%.
The technology sector's weight in the MSCI USA Index has reached approximately 38%, up 15 percentage points over the past four years. This index tracks large- and mid-cap US stocks covering about 85% of the market.
In emerging markets, tech's share of the MSCI EM Index stands at roughly 44%, more than doubling since 2022. The MSCI EM covers large- and mid-cap stocks across 24 countries, representing about 85% of each country's market cap.
Meanwhile, the technology sector's proportion of US investment-grade bond issuance has more than tripled over the same period, hitting a record ~20%. These figures underscore the growing dominance of tech in global capital markets.
Source: The Kobeissi Letter