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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 as the Domini 400 Social Index.
The MSCI KLD 400 Social Index is designed to provide exposure to the common stocks of companies that KLD determines have positive environmental, social and corporate governance (ESG) characteristics. The KLD400 consists of 400 companies drawn from the universe of the 3,000 largest U.S. public equities as measured by float-adjusted market capitalization. The index is composed approximately 90% of large cap 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. KLD selects the eligible universe index on April 15 (or closest business day) of each year.
KLD defines U.S. equity as follows:
KLD follows the rules of the FTSE AWD USA Index.
The following types of equities are not eligible for the KLD400:
In 2010, it was renamed from FTSE KLD 400 Social Index to MSCI KLD 400 Social Index. [1]
The GICS breakdown is shown here. The index is highly concentrated - ie Information Technology makes up over 39% of the total market capitalization.
Year | MSCI KLD 400 Social Index |
---|---|
2019 | 31.3 |
2020 | 20.8 |
2021 | 31.3 |
2022 | -21.7 |
2023 | 28.5 |
Constituents which make up 70% of the total index weight.
Constituent | Sector | Weight (%) [3] |
---|---|---|
Abbvie Inc | Health Care | 1.17 |
Accenture plc class A | Information Technology | 0.71 |
Adobe Inc | Information Technology | 0.92 |
Advanced Micro Devices Inc | Information Technology | 1.01 |
Alphabet Inc class A | Communication | 4.09 |
Alphabet Inc class c | Communication | 3.57 |
American Express | Financials | 0.51 |
Amgen Inc | Health Care | 0.63 |
Analog Devices Inc | Information Technology | 0.45 |
Applied Material Inc | Information Technology | 0.77 |
Blackrock Inc | Financials | 0.45 |
Blk csh fnd treasury sl agency | Cash and/or Derivatives | 0.42 |
Booking Holdings Inc | Consumer Discretionary | 0.52 |
Bristol Myers Squibb | Health Care | 0.33 |
Caterpillar Inc | Industrials | 0.63 |
Charles Schwab Corp | Financials | 0.43 |
Chubb Ltd | Financials | 0.41 |
Cisco Systems Inc | Information Technology | 0.73 |
CME Group Inc class A | Financials | 0.28 |
Coca-Cola | Consumer Staples | 1 |
Colgate-Palmolive | Consumer Staples | 0.29 |
Danaher Corp | Health Care | 0.7 |
Eaton Plc | Industrials | 0.5 |
Elevance Health Inc | Health Care | 0.49 |
Equinix REIT Inc | Real Estate | 0.28 |
FIS (company) | Financials | 0.17 |
Gilead Sciences Inc | Health Care | 0.32 |
Home Depot Inc | Consumer Discretionary | 1.35 |
Illinois Tool Inc | Industrials | 0.28 |
Intel Corporation | Information Technology | 0.51 |
Intercontinental Exchange Inc | Financials | 0.3 |
International Business Machines Co | Information Technology | 0.61 |
Intuit Inc | Information Technology | 0.65 |
Johnson Controls | Industrials | 0.18 |
Kimberly-Clark | Consumer Staples | 0.18 |
Lam Research Corp | Information Technology | 0.53 |
Linde Plc | Materials | 0.83 |
Lowes Companies Inc | Consumer Discretionary | 0.5 |
Mastercard Inc class A | Financials | 1.45 |
McDonald's Corp | Consumer Discretionary | 0.72 |
Merck & Co Inc | Health Care | 1.29 |
Microsoft Corp | Information Technology | 12.25 |
Morgan Stanley | Financials | 0.46 |
Nike Inc class B | Consumer Discretionary | 0.44 |
Nvidia Corp | Information Technology | 12.93 |
Oracle Corp | Information Technology | 0.89 |
Pepsico Inc | Consumer Staples | 0.88 |
Phillips 66 | Energy | 0.23 |
Procter & Gamble | Consumer Staples | 1.54 |
Progressive Corp | Financials | 0.47 |
Prologis REIT Inc | Real Estate | 0.41 |
Quanta Services | Industrials | 0.16 |
Roper Technologies | Information Technology | 0.23 |
S&P Global Inc | Financials | 0.55 |
Salesforce Inc | Information Technology | 0.88 |
Sempra | Utilities | 0.19 |
Servicenow Inc | Information Technology | 0.59 |
Sherwin Williams | Materials | 0.28 |
Tesla Inc | Consumer Discretionary | 2 |
Texas Instruments | Information Technology | 0.69 |
Trane Technologies plc | Industrials | 0.29 |
Union Pacific Corporation | Industrials | 0.53 |
Verizon Communications Inc | Communication | 0.65 |
Vertex Pharmaceuticals Inc | Health Care | 0.49 |
Visa Inc class A | Financials | 1.68 |
Walt Disney | Communication | 0.72 |
Xerox | Information Technology | 0.01 |
Zoetis Inc class a | Health Care | 0.31 |
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