PT - JOURNAL ARTICLE AU - Daniel Broby TI - Equity Index Construction AID - 10.3905/jii.2011.2.2.036 DP - 2011 Aug 31 TA - The Journal of Index Investing PG - 36--39 VI - 2 IP - 2 4099 - https://pm-research.com/content/2/2/36.short 4100 - https://pm-research.com/content/2/2/36.full AB - In this article, the author detail the historic background behind the science of constructing a country or global index. He argues that the industry has largely developed from practitioners rather than academia. He shows how a country index is related to the market portfolio of the capital market pricing model and details the trade-offs that modern index constructors have to make.TOPICS: Passive strategies, equity portfolio management, VAR and use of alternative risk measures of trading risk