What is the story about?
What's Happening?
Pitchbook and Morningstar have introduced a new benchmark index that combines public and private equity exposure. The Morningstar PitchBook US Modern Market 100 Index includes 90 of the largest US-listed companies and 10 significant late-stage venture-backed private companies, such as OpenAI, SpaceX, and Stripe. This index aims to provide a unified framework for benchmarking performance, serving as a basis for investable products. The collaboration between Pitchbook and Morningstar seeks to offer a more accurate reflection of modern equity markets, addressing the growing presence of private investments in investor portfolios.
Why It's Important?
The creation of this blended index is significant as it acknowledges the increasing role of private companies in the equity market landscape. By integrating both public and private entities, the index offers investors a comprehensive tool to evaluate investments across different market segments. This development could lead to more informed investment decisions and potentially drive the creation of new financial products that cater to the evolving needs of investors. The index also highlights the importance of having relevant benchmarks that capture the full spectrum of investment opportunities in today's market.
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