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International ETF Cuts Out Japan


An ETF that is likely not on the screens of most managers due to lower average daily volume, that has seen a huge pick-up in activity this week is TOK (iShares MSCI Kokusai Index, Expense Ratio 0.25%).

Averaging about 19,000 shares a day, the fund saw more than 500,000 shares trade on Wednesday of this week, and this ETF delivers Global Equity exposure, with its top weightings in AAPL (1.74%), XOM (1.71%), GE (0.96%), CVX (0.93%), and NSRGF (0.91%).

Holding 1,265 individual equity names the fund is very well balanced and intended to be a global equity proxy, with exposure to countries including the United States, Europe, Canada, Australia, and Asia (but importantly excluding Japan).

Given Japan’s impressive equity rally in 2013, activity in such a fund at this juncture (after the big move up) that excludes Japan is particularly interesting.

TOK is heavily slanted towards large and mega caps, with more than 82% of the portfolio exposure lying in mega/large caps. Other related ETFs in this “Global Equities” category that are perhaps more well-known to investors given higher asset and daily average volume levels include VEU (Vanguard FTSE All-World ex U.S. Index, Expense Ratio 0.18%), ACWI (iShares MSCI ACWI Index, Expense Ratio 0.35%), VT (Vanguard Total World Stock, Expense Ratio 0.22%), VXUS (Vanguard Total International Stock, Expense Ratio 0.18%), and ACWX (iShares MSCI ACWI ex U.S., Expense Ratio 0.34%) out of the twenty-five alternatives in this particular ETF category.

iShares MSCI Kokusai Index


For more information on Street One ETF research and ETF trade execution/liquidity services, contact Paul Weisbruch at pweisbruch@streetonefinancial.com.