Structured Products Europe: Vanguard's emerging markets switch highlights the need to scrutinise index constituents, say speakers
Vanguard's replacement of an MSCI index with a FTSE index as the underlying for emerging markets exchange-traded fund should remind investors to look carefully at underlying constituents, hears conference
The biggest driver of the performance difference between exchange-traded fund (ETF) provider Vanguard's new emerging markets ETF and its old one will be the fact that MSCI categorises South Korea as an emerging market and FTSE Group does not, according to Gareth Parker, senior director of Russell Investments, speaking at the Structured Products Europe conference in London on November 13.
"It will make investors realise they need to understand what is in the underlying index," said Parker. If you
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