MSCI Inc.

MSCI enjoys multiple durable advantages. Its well-known index brands and massive data library create a high switching cost for clients (replacing an MSCI-based index or analytics tool is complex and costly).

The company holds one of the world’s largest portfolios of equity, ESG, factor and private-asset indexes, which are widely adopted by asset managers and ETF providers. Network effects are present: as more flows (AUM) use MSCI’s indexes, its benchmarks become further entrenched.

MSCI also benefits from intangible assets like its proprietary GICS industry-classification system, climate ratings, and intellectual property. These advantages have led analysts to classify MSCI as a “wide moat” business.

The firm consistently invests in expanding its data/content moat through tech and partnerships (e.g. recent deals with Moody’s, acquisitions like Foxberry). Overall, MSCI’s competitive position looks very strong.