MSCI completed the second phase of including Saudi Arabia shares in its developing nations index, prompting billions of dollars in inflows from passive funds.
Thursday 29, August 2019
Investors in a New York-listed exchange-traded fund (ETF) tracking Saudi Arabian stocks withdrew the most money on record, just as MSCI completed the country’s long-awaited upgrade to its widely tracked emerging-markets benchmark, reported Bloomberg.
Outflows from the iShares MSCI Saudi Arabia soared to $119 million on 27 August, the most for any day since its inception in 2015. It’s the biggest ETF focused on Saudi equities trading in the US with $659 million in assets.
It’s been a good week for those seeking to pare bets on a market that brokers including Morgan Stanley say has become too expensive, given weakening fundamentals. Some active managers took advantage of the increased liquidity to reduce their holdings.