Backtesting the MSCI World Index is a cornerstone exercise for any global equity investor. It promises a window into how a diversified portfolio of developed-market stocks would have performed over decades. After conducting an extensive backtest using multiple data sources (Bloomberg, Kenneth French data library, and direct MSCI data), the results are both enlightening and treacherous. The headline is clear:
Executive Summary
7/10 (Deducted points for survivorship bias, dividend tax ambiguity, and currency overhang) msci world backtest