MSCI Index Changes May Affect Listed Stocks
Investors should watch for the upcoming list of companies facing removal from global benchmarks due to new operating criteria.
Updated on Oct. 16, 2026 in Investing
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MSCI is updating its index methodology to exclude non-operating companies that function similarly to investment funds. This change could lead to the removal of several firms from its global indexes, affecting investors who hold these securities.
Why it matters
The index provider aims to tighten standards by flagging companies that rely on specific financial ratios rather than traditional operating activities. Investors should review holdings to identify if any assets are potentially subject to removal from these major benchmarks.
MSCI will exclude companies failing four out of five specific financial ratios, a threshold designed to filter out non-operating corporate issuers. The criteria apply to constituents that miss the operating screen in two recent annual filings.
The players
MSCI
An index provider that maintains global equity benchmarks used by many institutional and retail investment products.
Strategy
A company currently trading at $149 that faces potential removal from major indexes under new MSCI criteria.
Metaplanet
A firm identified in an MSCI simulation as potentially subject to exclusion from investable market indexes.
The details
MSCI classifies certain corporate issuers as non-operating companies if they exhibit characteristics common to investment funds. These firms are screened against five non-industry-specific ratios, including expense and operating asset intensity. If a company fails at least four of these metrics over two consecutive annual filings, it faces removal from MSCI Global Investable Market Indexes. Strategy and Metaplanet are among the companies potentially impacted by this new index screening.
Timeline
August 2026: MSCI launched its consultation on non-operating company classification.
November 11, 2026: The final list of companies facing exclusion will be released.
November 2026: The MSCI Index Review announcement will reflect the new methodology.
Money Landscape
This move marks a shift in how index providers categorize corporate issuers to maintain consistency across global benchmarks. It specifically replaces existing interim measures for digital asset treasury companies following the upcoming review.
If you hold shares in companies flagged for potential exclusion, you may face increased price volatility as institutional funds rebalance. Consult with a financial professional to evaluate how index methodology shifts might impact the risk profile of your existing holdings.
The takeaway
The new screening process may trigger significant portfolio adjustments for those holding non-operating companies. Monitor upcoming index provider announcements to determine if your assets remain compliant with established market benchmarks.
What happens next
Investors should track the final exclusion list due on November 11, 2026, and the broader index review scheduled for November 2026.
Further reading
For more information on how index changes affect your portfolio, visit Investing.
Live Poll
Should index providers exclude companies that hold significant amounts of non-operating assets like Bitcoin?
