MorningStar Pitchbook Index tracks exposure to public and private assets.

MorningStar has developed a benchmark to reflect the trend with the hope of exposing the private market with publicly traded stocks among investors.

MorningStar PITCHOOK Us Modern Market 100 Index or Modern Market 100 is the first person to combine public and private equity exposure as an index. The benchmark is to capture the performance of 100 US companies classified as 90 public and 10 venture support companies, the company said.

The 90/10 SKEW is designed to reflect MorningStar considering the modern asset universe, which is a place where opportunities are expanded in the private market and that companies such as Openai and STRIPE can keep them private.

Sanjay Arya, head of MorningStar’s Index Products, said, “The company does not feel the urge to go publicly because it can raise a lot of capital.” “So to ignore them, I think you are missing some of the fastest and most dynamic companies.”

Private equity universe is dwarfed by the value of the publicly owned company. Arya said the US public stock market is worth about $ 60 trillion and the US private equity universe is about $ 8 trillion. But private companies can reflect where the economy is heading.

“The index must provide signs of what the economy is, what is the market sentiment, or the position where investors are looking for an opportunity.” “And if a big mass is outside the public market, you can’t do that in the public market.”

The trend can be more prominent. The alternative asset manager won a big victory this summer after signing an executive order that President Donald Trump signed an administrative order to summarize the way to add an alternative asset to 401 (K).

However, exposure to personal assets has been increasing for many years. According to MorningStar, crossover investors, including sovereign assets, private equity out companies and hedge funds, have been involved in about $ 45 billion in private market transactions. Arya hopes that Modern Market 100 will provide investors with a framework for benchmarking results in both asset classes.

But there is no challenge. This work started about four years ago, and Arya explained that the company should develop a rule-based process for public-private benchmarks, given the task of private assets. He said his team relied on secondary trading platforms such as Caplight and Zanbato to compete on price trading data. This index also applies a liquidity screen, quarterly re -adjustment and daily calculation.

The index also traces a company with more risks in essence, given the preference for the largest CAP company, which tends to be tilted into a big technology. The top 10 public components of the Hyundai Market Index are as follows. Microsoft,,, nvidia,,, apologize,,, Amazon and Meta platform. The top 10 personal components include SpaceX, Openai, XAI and Stripe.

In other words, there is a preference for a growth company with a more unique risk. It can mean that when the technical sector begins to shake, the index is vulnerable to the fullback, especially when many investors are afraid that the price will be set for the perfection of Mega Cap.

On the other hand, it can mean that the benchmark is ready to capture more performance. In the white paper, MorningStar showed that the one -year return of the Hyundai Market Index was 28.2%. In the same period, the S & P 500 increased by 20%.

According to ARYA, this index allows investors to track a very different opportunity than the main benchmarks. After all, Openai, a $ 500 billion company, is larger than Exxon Mobil, Palantir or Procter & Gamble. But most investors are rarely exposed to portfolios.

He pointed out that benchmarks have evolved to better reflect the drunkards of economic growth over time and to better reflect the economic growth drivers from the railway company that defined the DOW Jones Industrial Average in the late 1800s as today’s innovation economy.

“We have the components of this great innovation economy, and we can’t still capture the right thing in the late venture space, but I think it only provides more pictures.” Arya said.

“This actually helps to understand how this contour changes over time,” he said. “I think it provides great insights to investors.”

CNBC’s GABRIEL CORTES has contributed to this report.