MSCI adds first 30 Saudi stocks to EM index
Index provider MSCI will add 30 Saudi Arabian stocks to its Emerging Markets index for the first time this month as the country moves from being a standalone entity to an emerging market.
In its semi-annual index rebalance, the business said the addition would see 30 securities added, representing a 1.42 per cent of the Emerging Markets index, on 28 May. Further stocks would be added in a second phase in August 2019.
The inclusion of Saudi Arabian stocks was first announced by MSCI last June when it said Saudi Arabia would eventually make up 2.6 per cent of the EM index.
As well as this, eight Argentinian stocks would also be added to the same index, representing a 0.26 per cent weighting, after the country was upgraded from Frontier to Emerging Market status.
Lastly, the weighting of China A shares in the EM index was increased by 26 shares, making the weighting of A shares some 5.25 per cent in the MSCI China index and 1.76 per cent in the EM index. This was the first step in a three-stage process for A shares with a further 0.15 per cent to be added in August and 0.2 per cent in November.
China A shares, which were historically only available to domestic Chinese investors, were first made available in the EM index in June 2018.
AUTHOR
Laura Dew
Recommended for you
Two former senior Global X employees have launched their own ETF provider, ETF Shares, focused on offering index ETFs for advisers and retail investors.
With GCQ Funds Management and Lakehouse Capital making their recent ETF debuts, the two fund managers unpack why financial advisers are essential to their respective launches.
ETF provider Global X is set to launch its latest ETF, focused on artificial intelligence infrastructure.
Index provider MSCI has unveiled two measures to make it easier for financial advisers and wealth managers to access transparent insights into private assets.
