TY - JOUR T1 - ETFs Offer the World to Investors JF - ETFs and Indexing SP - 111 LP - 117 VL - 2001 IS - 1 AU - Steven A Schoenfeld AU - J. Lisa Chen AU - Binu George Y1 - 2001/09/21 UR - http://guides.pm-research.com/content/2001/1/111.abstract N2 - The rise in cross-border mergers and acquisitions, increasing integration across countries and sectors, and the steady but volatile growth of emerging markets have increased investor awareness of the many investment opportunities outside their home markets. This heightened interest in global investing has fostered several product introductions that offer investors exposure to international benchmarks. To many investors, there appears to be a bewildering array of index choices available and an equally arcane set of vehicles through which exposure can be obtained. However, on closer observation, one set of instruments stands out as offering investors diverse and flexible options to invest in international equity markets. They are exchange-traded funds (ETFs). The iShares MSCI is a series of ETFs that was originally launched in 1996 as a set of 17 single-country portfolios under the World Equity Benchmark Shares (WEBS) brand. Managed by Barclays Global Fund Advisors (BGFA), WEBS broke ground not only by offering US investors international exposure, but also as the premier of ETFs based upon '40 Act portfolios. Renamed iShares in May 2000, the BGFA-managed line of U.S. ETFs now numbers 68. More than a third of the iShares portfolios (25) presently track MSCI and S&P international and global indexes. MSCI benchmarks' market representation is now being broadened as well as being adjusted to reflect free-floating shares. And, as investors might expect, BGFA has moved to adjust the iShares MSCI portfolios accordingly. This article presents the case for international investing and discusses the choice between active and index vehicles for implementation, followed by a study of the many features and benefits of exchange-traded funds. ER -