A wide range of UK stocks are set to benefit from inclusion in the MSCI Global Small Cap index when it rebalances at the end of the month. Tracker funds that follow the index will be forced to buy the newly qualified stocks.

The MSCI Global Small Cap index captures small cap representation across 23 developed markets. With 4,419 constituents, the index covers approximately 14% of the free float-adjusted market capitalisation in each country.

Within the EMEA region (Europe, Middle East and Africa), the UK accounts for 24 new stocks being added to the index. This compares with 13 for Germany, 11 for Sweden, nine for Israel and smaller amounts for Italy, Saudi Arabia, Switzerland, Russia and Belgium.

In contrast, the biggest additions elsewhere in the world include the US, which will add 166 stocks to the index, and India which adds 69 stocks. Japan will see 80 securities deleted from the index and 23 added.

UK stocks joining the index include insurer Direct Line (DLG) and food delivery platform Deliveroo (ROO). While these are considered mid to large cap stocks in the UK, their approximate £4 billion to £5 billion market values are often considered small caps in other markets.

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