facebookHow do country indexes and ETFs (that track them) classify companies that are incorporated (or main business is in the home country) but listed elsewhere? - Seedly

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How do country indexes and ETFs (that track them) classify companies that are incorporated (or main business is in the home country) but listed elsewhere?

Eg. China has many tech firms like Alibaba etc that are listed in US (they are included in MSCI China) but here in SG, we have Razer/SEA which are listed in HK/US but not included in MSCI SG

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After much digging , i think i found the answer why MSCI China Index can have Alibaba, Tencent etc who are listed outside China but MSCI Singapore doesnt have SEA (soon to be included) , Razer .

https://www.businesstimes.com.sg/companies-mark...

Apparently MSCI has some guidelines that Singapore has not yet met under Sect 3.1.2.1 and Appendix IV of the MSCI Global Investable Market Methodology

https://www.msci.com/eqb/methodology/meth_docs/...

i think the main reason is that the size of the companies listed outside Singapore is not significant until now, with SEA and Razer and coming soon Grab.

View 1 replies

Maisul

20 Apr 2021

Youtuber at Google (Channel : Say Do Invest)

I think indexes can be coupled with the top 500 companies or top 100 like the DJIA etc etc.

ETF however should be seen seperately as they are , by actual factrun by fund managers who are open to choose what stocks are to belong in that certain fund.

i think i might sound a little confusing here but hope that make sense.

basically and ETF and indexes / s&P 500 etc should not be linked.

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