In an announcement made Sunday, and one that flew somewhat under the radar, Vanguard, the second-largest U.S. issuer of exchange traded funds, said the Vanguard FTSE Emerging Markets ETF (NYSE: VWO) has started tracking a FTSE transition index as the largest emerging markets ETF by assets makes its way to a benchmark that will include China A-shares.
As Pennsylvania-based Vanguard announced earlier this year, VWO is moving to the FTSE Emerging Markets All Cap China A Inclusion Index, which as the name of that benchmark implies, will allow VWO to hold A-shares, the stocks trading on mainland exchanges in Shanghai and Shenzhen. Vanguard intends to make VWO's transition to the FTSE Emerging Markets All Cap China A Inclusion Index a gradual one.
"To minimize market impact, in the first phase, the fund will track the FTSE Emerging Markets All Cap China A Transition Index, ...
/www.benzinga.com/trading-ideas/long-ideas/15/11/5956584/as-index-providers-change-views-on-china-emerging-market-etfs alt=As Index Providers Change Views On China, Emerging Market ETFs Get New Looks>Full story available on Benzinga.com
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