The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Institutional Investors Pull $887MM from a Vanguard ETF Not Rated 0.0 Email Routing List Email & Route  Print Print
Wednesday, December 05, 2012

Institutional Investors Pull $887MM from a Vanguard ETF

News summary by MFWire's editors

It was clear when Vanguard [profile] announced its indexer switch from MSCI to FTSE that it would lose some institutional investors who were committed to the MSCI index.

And now the bill is in: the Vanguard MSCI Emerging Markets ETF saw $887 million in redemptions in November, according to Bloomberg's Christopher Condon.

Meanwhile, BlackRock's [profile] iShares MSCI Emerging Markets Index ETF took in $2.34 billion last month, Condon writes. The Vanguard ETF holds $57 billion and the iShares ETF $41 billion.

According to a Vanguard spokesman, these redemptions were expected.

"We anticipated a certain amount of leakage of assets," the spokesman told Bloomberg. "However, we're willing to sacrifice short-term cash flow to lower costs for all of our index-fund shareholders."

The change from MSCI to FTSE has a particular impact on emerging markets, since the two indexers use different criteria to determine a country's status -- South Korea, for instance, is a developed market according to FTSE, but an emerging market under MSCI's methodology.

The next few months may test Vanguard's management's sangfroid, as the switch from MSCI has not even gone into effect yet. The Bloomberg piece says that the firm will begin switching to FTSE in January. 

Edited by: Chris Cumming

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2019: Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

©All rights reserved to InvestmentWires, Inc. 1997-2019
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use