State Street intends to launch an emerging market exchange-traded fund (ETF) that excludes Brazil, Russia, India and China (BRIC).
In a filing with the Securities and Exchange Commission, the company said the SPDR MSCI Beyond BRIC ETF would invest in countries that are part of the MSCI Emerging Markets Index, excluding the BRIC countries.
State Street says the fund will use a sampling strategy, which means that the fund is not required to purchase all of the securities represented in the index.
Instead, the fund may purchase a subset of the securities in the index in an effort to hold a portfolio of securities with generally the same risk and return characteristics of the index.
State Street didn’t say when it expects to launch the ETF.
At the end of June, the following countries belonged to the MSCI Emerging Markets Index: Brazil, Chile, China, Colombia, the Czech Republic, Egypt, Hungary, India, Indonesia, Malaysia, Mexico, Morocco, Peru, the Philippines, Poland, Russia, South Africa, South Korea, Taiwan, Thailand and Turkey.
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