Alibaba, Baidu to Find Homes in MSCI Indexes

Earlier this month, MSCI rival FTSE said it commenced initial studies into the possibility of including companies with primary listings outside of their home domiciles in FTSE indices. FTSE currently excludes Alibaba and Baidu from well-known ETFs such as the Vanguard FTSE Emerging Markets ETF (NYSEArca: VWO), the largest emerging markets ETF by assets, and the iShares China Large-Cap ETF (NYSEArca: FXI). [Alibaba, Baidu Could Join FTSE Indices]

S&P Dow Jones was the first of the major index providers to allow for the inclusion of Alibaba in its global benchmarks. The index provider made that announcement prior to the Alibaba IPO and the stock has since appeared in ETFs that track S&P indices such as the SPDR S&P China ETF (NYSEArca: GXC), one of the largest U.S.-listed China ETFs.

ETFs that currently feature notable weights to Alibaba include the Guggenheim China Technology ETF (NYSEArca: CQQQ), which added the stock a month ago, the KraneShares CSI China Internet Fund (NasdaqGM: KWEB) and the Renaissance IPO ETF (NYSEArca: IPO). IPO was the second U.S. ETF to add Alibaba after the company’s IPO.

iShares MSCI Emerging Markets ETF


Tom Lydon’s clients own shares of EEM. Todd Shriber owns shares of Alibaba.