Will China A-Shares Be Included in Emerging Markets?

When MSCI decides to move a country in or out of the MSCI Emerging Markets Index, funds that track this index have to implement these changes when the index does

Patricia Oey 9 June, 2016 | 3:52PM
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In April this year, the World Bank released its 2016 edition of World Development Indicators, and for the first time, it stopped classifying countries as "developing" and "developed." According to the organization, the distinction was no longer relevant, as it aims to use a set of sustainable development goals that can be applied to all countries.

Investors in emerging-markets index funds should consider if they want to hold a fund whose China allocation is likely to grow

The investment world, for the most part, continues to view developed and developing or emerging markets as two separate allocations within a diversified portfolio. And the question "what is an emerging market" comes up when MSCI makes its annual announcement regarding market or country changes to its developed-markets and emerging-markets indexes.

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About Author

Patricia Oey  Patricia Oey is an ETF analyst at Morningstar.

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