Human Rights Index Fund Is A Wrong Idea

By
March 12, 2012
Share:

 

The sentiment behind the iShares Human Rights Index Fund that went into registration at the Securities and Exchange Commission last week looks like it might be another example of an interesting idea not equaling a good fund, according to an article on Market Watch.

The ETF’s MSCI indexing methodology will exclude countries and companies that violate human rights. However, that leaves the fund with 8,900 stocks in 42 countries, as opposed to the MSCI All-Country index’s 9,000 stocks and 45 counties, reports Chuck Jaffe, contributor of the Market Watch article.

Jaffe argued that the loss of 3 percent of securities and exclusion of three nations isn’t likely to entice the audience the fund seeks. Without assets, the ETF may end up shuttering, just as funds with catchy but suspect strategies have in the past, Jaffe said, citing funds such as StockCar Stocks Index Fund.

Head over to MarketWatch.com for Jaffe’s full perspective.

ETF.COM CHANNELS

Trying to figure out alternatives ETFs? Use our alternatives ETFs channel, library and ETF screener!

Want to learn more about smart-beta ETFs? Check out our smart-beta guide, essentials library and ETF screener!

ETF DAILY DATA

The broad-market 'SPY' and energy ETF 'XLE' were the biggest winners in terms of inflows on Thursday, Aug. 27.

The top three ETF issuers all saw net inflows into their products as the market surged on Thursday, Aug. 27.

ETF.COM ANALYST BLOGS

By Dave Nadig

With many ETFs currently trading well off fair value, what’s an ETF investor to do? Don’t panic.

By Matt Hougan

Out-of-favor funds can bring attractive returns.

By Matt Hougan

New data from Charles Schwab show that the death of mutual funds is happening faster than we thought.

By Dave Nadig

Grab the popcorn. Precidian just doubled-down on its nontransparent active ETF proposal with the SEC this morning.

ETF INDUSTRY PERSPECTIVE

By John Del Vecchio

An index that goes long financially sound companies and shorts the ones with problematic balance sheets.

By Dan Draper

The nature of retirement is changing. How can investors adapt?

By Invesco PowerShares

A more in-depth look at the smart-beta survey's results.