The Banking and Strategy Initiative

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Going on with ETFs and Ethics | Advantage zyaada

Emerging markets are not the only hot topic in investment markets this year, a new index being born for Church Stocks as well ( se today’s emerging market report as well) The new Church stoxx index includes the oil spill culprit BP, Vodafone and 500 other “approved sources in line with the values and principles of the Christian religion.”

Groups that make money from pornography, weapons, tobacco, birth control and gambling are not permitted for listing.

The index does not take into account the environmental damages caused by major corporations, as many secular ethical funds do, but rather judges them based on an interpretation of scripture, much like funds that attempt to operate within the bounds of Islamic finance

The Vatican is of course represented and this resurgence probably means that there will be significant capital in Europe channelised into scripture while Abu Dhabi, Temasek and Shanghai take most of the secular investments in the retail and materials/commodities boom in Brazil, India, China and NATO members South Africa and Australia

On these emerging markets front, the two global ETFs based on the MSCI Emerging Markets Index, iShares EEM from Blackrock and VWO from Vanguard showed up the entire market with approx $100 b in the two funds together mistly running an exchange battle against each other. While March 2009 started with $70b in Blackrock iShares and $30billion in the Vanguard offering, seemingly the expense raito of 0.27% that is one third of the expenses in the Blackrock scheme mean that while the index itself continues rising, more funds have crossed over to Vanguard VWO in these 12 months..Today VWO from Vanguard has $104 billion under the belt just a whisker behind EEM (iShares) at $115 billion

According to an ETF Trends report (seekingalpha) EEM has hit $35.4 B and VWO $24B , both numbers maintain Vanguard is catching up..Also According to ETF Trends , all US listed ETFs have reached a AUM of $846B again underlining to us that in developed markets even with crashing europe funds, there is limited interest in emerging markets as a percent overall


This entry was posted on May 1, 2010 by in Emerging Markets, ETC, Financial Markets, Financial Services and tagged , , , , , .


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