MSCI Indices Could Make Room for Alibaba

S&P Dow Jones Indices went on to note “According to our published index rules, Alibaba Group Holding would be eligible for all standard S&P Dow Jones Global Benchmarks that include Chinese stocks. In particular, it will be screened for inclusion in the S&P China BMI, and therefore the S&P Emerging BMI and S&P Global BMI, according to the index’s standard IPO addition policy.”

That means ETFs such as the SPDR S&P China ETF (NYSEArca: GXC) and the SPDR S&P Emerging Asia Pacific ETF (NYSEArca: GMF). Those ETFs have $980 million and $723 million in assets under management, respectively. [Alibaba’s ETF Prospects Improve With S&P News]

The Renaissance IPO ETF (NYSEArca: IPO) will be the first ETF to add Alibaba, doing so after the stocks eleventh trading day. The KraneShares CSI China Internet Fund (NasdaqGM: KWEB) and the KraneShares CSI China Five Year Plan ETF (NYSEArca: KFYP) will add Alibaba after the stocks’ eleventh trading day.

iShares MSCI Emerging Markets ETF

Tom Lydon’s clients own shares of EEM.