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.
KLD selects the eligible universe index on April 15 (or closest business day) of each year.
The index is highly concentrated - ie Information Technology makes up over 39% of the total market capitalization.
As can be seen, 33% of the index is made up from three companies (Nvidia, Microsoft and Alphabet).