What Was the World Equity Benchmark Series (WEBS)?
International World Equity Benchmark Series (WEBS) funds were traded on the American Stock Exchange. It was a hybrid security first developed by Morgan Stanley in 1996 and included features from closed- and open-end funds.
The iShares MSCI Emerging Markets Exchange Traded Fund (ETF) replaced WEBS in 2000. The iShares MSCI Developing Markets ETF aims to replicate the investment performance of the MSCI Emerging Markets Index, which comprises developing market stocks with big and mid-capitalization.
Understanding the World Equity Benchmark Series (WEBS)
A fund established as a publicly traded investment is known as a closed-end fund. Through an IPO, these funds can raise a certain quantity of money. The funds are deposited into a fund, traded on a public market, and listed like a stock. It’s a tailored stock portfolio with a set amount of shares acquired once. An open-end fund is a traditional mutual fund composed of several participants’ contributions to invest in stocks and bonds. Gains and losses are divided among investors according to the amount they invested in the fund.
Every security traded on the MSCI national indexes was held by an entity that utilized a WEBS. The ownership was based on the original investment or capitalization. Like stocks, a WEBS may be purchased, sold, and exchanged.
Investors might use the WEBS to diversify their portfolios internationally. Australia, Austria, Belgium, Canada, France, Germany, Hong Kong, Italy, Japan, Malaysia, Mexico, the Netherlands, Singapore, Spain, Sweden, Switzerland, and the United Kingdom were among the several nations for which the World Equity Benchmark Series was accessible.
To maintain brand consistency across all exchange-traded funds managed by Barclays Global Investors (now BlackRock), the World Equity Benchmark Series (WEBS) was renamed the iShares MSCI Emerging Markets ETF.
iShares MSCI Australia, iShares MSCI Austria, iShares MSCI Belgium, iShares MSCI Canada, iShares MSCI France, iShares MSCI Germany, iShares MSCI Hong Kong, iShares MSCI Italy, iShares MSCI Japan, iShares MSCI Malaysia, iShares MSCI Mexico, iShares MSCI Netherlands, iShares MSCI Singapore, iShares MSCI South Korea, iShares MSCI Spain, iShares MSCI Sweden, iShares MSCI Switzerland, and iShares MSCI United Kingdom were among the indexes at the time. SPDR S&P 500 Trust and the iShares MSCI Emerging Markets ETF are examples.
The SPDR S&P 500 Trust is an exchange-traded fund (ETF) that follows the Standard & Poor’s 500 Index (S&P 500) and is managed by State Street Global Advisors. It is comparable to the iShares MSCI Emerging Markets ETF. Formerly, the Standard & Poor’s depository receipt was the only name for the SPDR S&P 500 Trust. It was more often abbreviated as SPDR and called a “spider.”
A share of the SPDR S&P 500 Trust trades at about one-tenth the S&P 500’s dollar-value level and comprises one-tenth of the S&P 500 index. The SPDR S&P 500 Trust allows investors to diversify widely to specific market segments.
One financial instrument that aims to replicate the overall return performance of the S&P High Yield Dividend Aristocrats Index is the SPDR S&P Dividend ETF. This indicates that dividend-paying equities included in the S&P 500 are indexed by the SPDR S&P Dividend ETF. The ETF, comprising 112 firms, uses price per share, or net asset value, to measure performance.
Conclusion
- In 2000, the iShares MSCI Emerging Markets Exchange Traded Fund (ETF) replaced the World Equity Benchmark Series (WEBS).
- The iShares MSCI Developing Markets ETF aims to replicate the investment performance of the MSCI Emerging Markets Index, which comprises developing market stocks with big and mid-capitalization.
- The SPDR S&P 500 Trust is an exchange-traded fund (ETF) that follows the Standard & Poor’s 500 Index (S&P 500) and is managed by State Street Global Advisors. It is comparable to the iShares MSCI Emerging Markets ETF.
