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iShares Taps into European and Asian Financial ETFs

In a bid to bring foreign stocks closer to the United States through ETFs, iShares has filed with the SEC to create two new funds dedicated to overseas financial companies. The new funds will be the first of their kind, but will hope to follow in the footsteps of popular US-based financial ETFs trading on the NYSE.

The iShares MSCI Europe Financial Sector Index Fund will track a composition of stocks very much like its underlying index, which is comprised of 105 companies in 15 different European countries, according to the prospectus. The fund makes no distinctions by the size of the financial institution, indicating that iShares is hoping to create a broad based index ETF, rather than pinpoint a niche within the European markets.

The iShares MSCI Far East Financial Sector Index Fund will work differently than its partner fund, opting to utilize a sampling of stocks to derive similar performance results as its underlying index, according to the prospectus. The underlying index contains 93 different banks, insurance and real estate companies in three different Asian countries, including Hong Kong, Japan and Singapore. 

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