The MSCI KLD 400 Social Index is the oldest corresponding US Index. The Index reflects the performance of 400 US companies which cope with specific social and environmental criteria. Based on free-float market CAP the index contains holdings at approximately 250 companies from the S&P 500, 100 non-S&P companies chosen for sector diversification and market capitalization, and 50 additional companies with exemplary social records. In selecting companies the index seeks the following criterias:
- the social performance;
- the market capitalization;
- the sector of the companies. New listed companies in the S&P 500 are preferred.
However not every company of the S&P 500 universe is included in the MSCI KLD 400 Social Index. Even though a company meets the social criteria it is not included when the sector of the company is overrepresented in the index yet.