See: MSCI.
Obviously, there's a lot going on with this index. Basically, it's meant to track the performance of a basket of stocks from larger commodity-related companies, headquartered in various parts of the world. That's the gist. But we'll break it down in a little more detail.
The "All Country World" part indicates (in somewhat redundant fashion) that the index covers the entire globe. From Brazil to Belgium. From the United States to the United Arab Emirates. Specifically, the index covers stocks from 23 developed countries and 24 emerging nations.
Meanwhile, the "commodity producers" part denotes the fact that the index covers stocks for companies engaged in some kind of commodity production. Oil companies. Miners. Makers of agricultural chemicals. That kind of thing.
The "capped" part designates the fact that the index is weighted by market capitalization. Basically, bigger companies (as measured by market cap) get more influence on the index.
Related or Semi-related Video
Finance: What is a Country Basket (Index...30 Views
Finance, a la shmoop. What is a country basket index fund?
All right we're picking daisies, marigolds, lilies so uh how do we [Pictures of flowers]
rephrase in Italian? Like, we want to fill a portfolio basket with just stocks [Pouring a glass of red wine]
representing the overall financial health of Italy. Is Italy healthy? While
they smoke a lot they drink a lot of wine they eat a bunch of pasta but there
always seems to be a woman from some small village who's celebrating her [Old woman at a birthday party]
117th birthday over there. Well a country basket is just an index fund of
stocks representing a country. Like we're doing Korea... South we're gonna have
in that basket dunno some Samsung, a load of Daewoo, a hunk of Hyundai and some [Company stocks being added to the basket]
nice barbecue on the side. That'd be our Korean country basket and it's a good
basket to fill if you're just bullish on a country but not really sure which
flower on which to place your bets. It's like instead of trying to decide between [The stocks in the basket turn into flowers]
roulette or poker or slots... Well you just buy stock in Las Vegas
Sands you know you bet on the entire casino, and bueno Fortuna you know good [Someone checking their cards in a casino]
luck there pal, doesn't the house always win? Yeah so why do people keep going there?...
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