More investors want public and private assets in its portfolio. There is now a scale for tracking this combo

With the desire for exposure to the private market, along with publicly traded shares that have gained traction among investors, have developed a Morningstar scale that reflects the trend.

The Morningstar PitchBook US Modern Market 100 or the modern market 100 is the first to combine a public and private capital exhibition in one index, the investment research company announced on Wednesday. The purpose of the scale is to capture the performance of 100 large US companies, divided into 90 public companies and 10 companies supported companies, the company said.

The Skew 90/10 is designed to reflect what Morningstar is considering a modern universe of assets, a one that is expanding opportunities on private markets and companies like Openi and Stripe.

“The donation of companies feels the urge to publish because they can gain a lot of capital,” Sanjay Arya, head of innovation, index products, in Morningstar. “To ignore them, I think you are missing some of the fastest and most dynamic companies out there.”

The universe of private capital is covered by the value of publicly held companies. The US public stock market is worth about $ 60 trillion, while the US private capital universe is about $ 8 trillion, Arya said. However, private companies can reflect where the economy is heading.

“Indices are supposed to give you a hint of what is economical or market, or where people should be investors to look for opportunities,” Arya said. “And you can only do it in public markets if there is a big piece of his outside the public markets.”

The trend can be even more pronounced. Alternative asset managers recorded a great victory this summer after President Donald Trump signed an executive order in August, which cleaned the way for alternative assets to be added to 401 (K).

However, the exhibition of private assets has been growing for years. According to Morningstar, since 2021, crossover investors include sovereign rich funds, companies to buy private capital and Hedge funds are involved in the 5,000 private markets of $ 450 billion. Arya hopes that the modern market 100 will provide investors for comparing performance in both asset classes.

But it is not without his challenges. The work began about four years ago, said Arya, and explained that the company needs to develop a process based on the measure of the public and private sector, given the call for securities for private assets. He said his team joined the platforms of secondary trading platforms such as Capelight and Zapbato to aggregate the price transaction. The index also applies liquidity screens, quarterly superiority and daily calculations.

The index is also monitoring companies with inherently more risks due to their preference for companies with large caps that tend to skeard large technology. The 10 best public components in a modern market index include Microsoft,, Nvidia,, Apple,, Amazon and Meta platform. The 10 best private ingredients include SpaceX, Openai, Xai and Stripe.

In other words, they exist best for growth companies with more inherent risk. This could mean that the index is susceptible to a sweater if the technological sector begins to remember – especially when many investors are afraid that megacaps are prices for perfection.

On the other hand, this could mean that the scale is perobed to capture more outperformation. In the White Book Morningstar, he showed that a one -year return for a modern market index is 28.2%. In the same period of time, S&P jumped 20%.

According to Arya, the index allows investors to monitor the very difference that is captured in large benchmarks. After all, Openai, the company reportedly worth $ 500 billion, is larger than the Exxon Mobile, Palantir or Procter & Gamble, and yet it is the name that most investors have a small exposure to their portfoli.

Over time, onchmarks evolved to better reflect economic growth drivers, starting with railway companies that defined the industrial average Dow Jones at its foundation at the end of the 18th century to the innovation economy of today’s.

“We have this large component of the innovation economy and we cannot fully capture it, which is usually the right still in the business space at the late stage, I think it just provides a fuller picture.” Arya said.

“This will help you understand how these outlines are a little shift over time,” he continued. “I think it provides great knowledge for investors.”

– Gabriel Cortes CNBC contributed to this report.