| Is a tomato a fruit or a vegetable? Is Bob Dylan folk or rock? Is the Alibaba initial public offering China or U.S.? The largest IPO in history showed how tricky it is for index-makers to fit some foreign companies into tidy categories. As a Chinese company domiciled in the Cayman Islands and listed on a U.S. stock exchange, Alibaba Group Holding Ltd.'s (BABA) entered an index no-man's land.
It was stunning to learn -- even for an ETF analyst -- that the criteria used by many indexes meant that a company with a market cap the size of Amazon’s couldn't go into any of the 250 largest ETFs...............................................Full Article: Source
|