ETF Watch: iShares Plans Plain Vanilla Int’l Fund

December 22, 2016

iShares has filed for an ETF that will target developed-market equities across the size spectrum. The iShares MSCI International Developed ETF will track equities from 22 markets.

The plain-vanilla index is cap-weighted and selects its component stocks from the small-, mid- and large-cap segments. The proposed fund is akin to a souped-up MSCI EAFE fund in that it doesn’t just cover ­­­­large- and midcap stocks, and it also includes Canada. Canada performed well in 2016, and has significant exposure to the commodity space.

The fund’s plain-vanilla, unhedged exposure is unusual in this era of smart-beta and currency hedging. The largest competitor to such a product is the Vanguard FTSE Developed Markets ETF (VEA), which has $39.5 billion in assets under management and covers the same broad market capitalization spectrum and also excludes the U.S.

The filing did not include an expense ratio, ticker or listing exchange.

Contact Heather Bell at [email protected].


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