Building A Better Country Index

August 21, 2014




The amount of “missing” market capitalization due to less-than-complete single-country benchmarks should not be taken lightly, as it not only impacts investors, but the state of local capital markets as well. The impact on Israeli capital markets was magnified by its 2010 “graduation” to developed-market status by MSCI. At that point, Israel’s country weighting went from roughly 400 bps in MSCI’s emerging markets index to less than 40 bps in its broadest developed-market index, which made it easily ignorable by global portfolio managers.


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