Young Research & Publishing Inc.

Investment Research Since 1978

Disclosure

  • About Us
    • Contributors
    • Archives
    • Dick Young’s Safe America
    • The Final Richard C. Young’s Intelligence Report
    • You’ve Read The Last Issue of Intelligence Report, Now What?
    • Dick Young’s Research Key: Anecdotal Evidence Gathering
    • Crisis at Vanguard
  • Investment Analysis
    • Bonds
    • Currencies and Gold
    • Dividend Investing
    • ETFs & Funds
    • Investment Strategy
    • Retirement Investing
    • Stocks
    • The Efficient Frontier
  • Investment Counsel
  • Retirement Compounders®
  • Free Email Signup

A Bet on Emerging Markets is a Bet on Asia

February 26, 2018 By Jeremy Jones, CFA

By Kisan @ Shutterstock.com

MSCI is revamping the rules for inclusion in the widely followed MSCI Emerging Markets index. MSCI plans to cut the weight of stocks with unequal voting rights. If implemented, the rule would increase the weight of Asian stocks in the index to over 75% while lowering the weight of Latin American stocks to about 11%. The biggest country weights in the MSCI Emerging Markets index are China, South Korea, and Taiwan.

Like most market capitalization weighted indices, the MSCI Emerging Markets index is top heavy. The top five countries (out of 24) account for 73% of the weight of the index. If you are buying Emerging markets stocks, your fortunes are going to rise and fall with the prospects of the Chinese, Korean, and Taiwanese economies. Steve Johnson writes at FT:

Latin America’s dwindling weight in the closely followed MSCI Emerging Markets equity index is set to plunge still further under proposals from the US index group.

MSCI has proposed adjusting the weighting of companies in its global index family to reflect the proportion of voting power held by freely floating stock.

The move would cut the weighting of companies whose founders maintain control by issuing publicly listed stock with low, or even non-existent, voting rights — a powerful punishment in an investment world increasingly driven by index weightings.

Read more here.

Share this:

  • Email
  • Twitter
  • Facebook

You Might Also Like:

  • China Stocks Enter the MSCI Emerging Market Indices
  • Short-Sellers Bet Against Twitter
  • Emerging Markets Currencies have Worst Week Since 2016
  • Author
  • Recent Posts
Jeremy Jones, CFA
Jeremy Jones, CFA, CFP® is the Director of Research at Young Research & Publishing Inc., and the Chief Investment Officer at Richard C. Young & Co., Ltd. CNBC has ranked Richard C. Young & Co., Ltd. as one of the Top 100 Financial Advisors in the nation (2019-2022) Disclosure. Jeremy is also a contributing editor of youngresearch.com.
Latest posts by Jeremy Jones, CFA (see all)
  • Money Market Assets Hit Record High: $5.4 Trillion - May 26, 2023
  • The Mania in AI Stocks Has Arrived - May 25, 2023
  • The Wisdom of Sam Zell - May 24, 2023

Search Young Research

Most Popular

  • Your Survival Guy Felt Like a U.N. Worker in Rome
  • The Mania in AI Stocks Has Arrived
  • Money Market Assets Hit Record High: $5.4 Trillion
  • Your Survival Guy in Rome 30-Years A.B. (After Babson)
  • The Future of the American City is This…
  • Vanguard Wellesley (VWINX) vs. Wellington (VWELX): Which Fund is Best?
  • A Three-Week International Research Trip to Paris via Rome
  • Is an Investment Property Disaster Looming?
  • The Power of a Compound Interest Table
  • Risk and Reward: An Efficient Frontier

Don’t Miss

Default Risk Among the Many Concerns with Annuities

Risk and Reward: An Efficient Frontier

How to be a Billionaire: Proven Strategies from the Titans of Wealth

Cryptocosm and Life After Google

Warning: Avoid Mutual Fund Year End Distributions

Is Gold a Good Long-term Investment?

How to Invest in Gold

Vanguard Wellington (VWELX): The Original Balanced Fund

What is the Best Gold ETF for Investing and Trading?

Procter & Gamble (PG) Stock: The Only True Dividend King

The Dividend King of the North

You’ll Love This if You’re Dreaming of an Active Retirement Life

The Importance of a Balanced Portfolio

Invest with Peace of Mind and Comfort

What Kind of Life Are You Investing For?

RSS The Latest at Richardcyoung.com

  • Is This the Summer of the Tick Fest
  • Your Survival Guy’s Take on ChatGPT and AI
  • CBDCs Not “Just Another Form of Money”
  • ALLIGATOR MARKET: Calm Surface Hides Danger Below
  • The Sham Claims of Lab-Grown “Meat”
  • Progressive Liberalism Has Dragged America near Ruination
  • Successful Investing Is a Mindset
  • The Nickel Pickle from EVs
  • My Nephew Graduates, and I’m Larry the Cable Guy
  • Why Is the Media So Terrified of Robert F. Kennedy Jr.’s Ideas?

RSS The Latest at Yoursurvivalguy.com

  • Your Survival Guy’s Take on ChatGPT and AI
  • ALLIGATOR MARKET: Calm Surface Hides Danger Below
  • My Nephew Graduates, and I’m Larry the Cable Guy
  • California Is Driving These Wealthy Businesses Out of the State
  • Rome, Paris, U.S.A.: Global Crisis in Confidence
  • Your Survival Guy’s Best Insider’s Guide to Rome
  • What Is a Fiduciary Duty? Are You Working with a Fiduciary?
  • Survive and Thrive June 2023: Your Survival Guy in Rome 30-Years A.B. (After Babson)
  • Birth Rates in France Worst Since Post-WWII Era
  • Your Survival Guy Felt Like a U.N. Worker in Rome

About Us

  • About Young Research
  • Archives
  • Contributors

Our Partners

  • Richard C. Young & Co.
  • Richardcyoung.com

Copyright © 2023 | Terms & Conditions

 

Loading Comments...
 

    loading Cancel
    Post was not sent - check your email addresses!
    Email check failed, please try again
    Sorry, your blog cannot share posts by email.