Human Rights Index Fund Is A Wrong Idea

By
Devon Layne
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 DAILY DATA

The S&P 500 funds 'SPY' and 'IVV' led inflows on Thursday, Feb. 26, as total U.S.-listed ETF assets dipped to $2.094 trillion

'SPY,' 'MDY, 'XLF' and 'XLY' paced SSgA's issuer-leading inflows on Thursday, Feb. 26, as total U.S.-listed ETF assets fell to $2.094 trillion.

ETF.COM ANALYST BLOGS

By Elisabeth Kashner

Virtu’s mind-bending way to play oil market volatility is a fascinating glimpse into the world of ultra-sophisticated investors.

By Dave Nadig

A reader asks: What happens to ETFs when the market goes nuts?

By Dennis Hudachek

In the growing world of currency-hedged ETFs, Germany strategies are getting short shrift.

By Elisabeth Kashner

A look at ETF.com's powerful revamping of its classification of U.S. total market ETFs.