iShares, the world's largest ETF provider, is making another
major marketing push by filing paperwork detailing plans for
several new ETFs, four of which would expand on equities funds the
company already offers by increasing the scope of securities they
cover in each respective region.
Calling it their "investable market" funds, iShares is basically
serving up a one-stop-shop opportunity for investors via ETFs that
cover 99 percent of a region's investable equities rather than
segmenting exposure through market-capitalization tiers that often
exclude some of the smaller companies in a given space.
Perhaps its most timely addition given the increasing popularity
of developing economies at a time of stagnant growth in the U.S.
and in Europe would be the iShares MSCI Emerging Markets Investable
Market Index Fund-an ETF that covers companies of all market
capitalizations across 21 countries and replicates an MSCI index
that comprises more than 2,600 securities.
The new ETF is in many ways like iShares' MSCI Emerging Markets
Index Fund (NYSEArca:EEM) on steroids. EEM is the world's
second-largest emerging markets ETF, with some $32 billion in
assets, but the fund carries a tilt toward mid- to large-cap names,
something that iShares' new fund would address.
Investable market funds go directly against the trend for
increasingly narrow-focused strategies because they are perhaps as
broad and comprehensive an exposure as investors can get in a given
stock market. But it remains to be seen whether the new funds will
find a following amid a crowd that seems perfectly content with
other highly successful iShares ETFs, such as EEM.
The other investable market ETFs iShares plans to launch
iShares ACWI Investable Market Index Fund, which would expand on
the $2.7 billion iShares MSCI ACWI Index Fund (NYSEArca:ACWI). The
fund's underlying index taps into some 44 countries and holds more
than 8,600 securities.
iShares MSCI ACWI ex US Investable Market Index Fund, which
would join the $986 million iShares MSCI ACWI ex U.S. Index Fund
(NYSEArca:ACWX). The strategy's benchmark comprises some 6,170
securities focused primarily on financial, industrial and materials
iShares MSCI EAFE Investable Market Index Fund, which would
expand on the $34.4 billion iShares MSCI EAFE Index Fund
(NYSEArca:EFA). The fund invests in equities of all
market-capitalization tiers across 22 developed markets.
iShares plans to replicate these indexes through representative
sampling strategies, meaning the funds will only hold a portion of
the securities included in their respective benchmarks.
No tickers or fees were disclosed in the filings.
Permalink | 'copy; Copyright 2009 IndexUniverse LLC. All rights
Don't forget to check IndexUniverse.com's ETF Data
2012 IndexUniverse LLC
. All Rights Reserved.