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Does your index fund invest in what you want?

Linton
Linton Posts: 18,558 Forumite
Part of the Furniture 10,000 Posts Name Dropper Hung up my suit!
moved to savings & investments

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  • jamesd
    jamesd Posts: 26,103 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 2 September 2013 at 2:40PM
    Looks as though that fund uses the MSCI developed Asia excluding Japan index. Which means it excludes much of Asia. Korea has been a developed market for the FTSE indexes since 2009. Vanguard is in the process of changing from MSCI to FTSE indexes so you might ask Vanguard when they plan to change this.

    But look on the bright side. MSCI decided that Greece is now an emerging market instead of a developed one.

    Welcome to the wonderful world of market cap weighted passive trackers that can easily end up overweight in just what you don't want to be overweight in. And where you can end up completely skipping a country if you mix index providers.
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