Matt Krantz of USA Today brought up a void in exchange traded fund offerings for foreign investment.  He was wondering why there are not any ETFs representing small-cap international or emerging market companies and value oriented international or emerging market companies.

Barclays answered him with a few reasons why.

  1. Creating an ETF needs regulatory approval which can take time.
  2. Many small-cap value stocks in emerging markets don’t trade frequently, the demand isn’t steady or predictable and this makes it challenging to create an ETF.

This answer doesn’t mean they aren’t coming, but it doesn’t mean they are either.  We will have to wait and see.

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