Using World Equity Benchmark Shares to Achieve International Diversification

Olienyk, John P.; Schwebach, Robert G.; Zumwalt, J. Kenton
June 2000
Journal of Financial Planning;Jun2000, Vol. 13 Issue 6, p98
Academic Journal
This article describes the nature and advantages of World Equity Benchmark Shares (WEBS), investment firms that are designed to track the Morgan Stanley Capital International stock market indices for single foreign countries. WEBS are a hybrid security, offering some of the features of both mutual and closed-end funds. They were introduced in March 1996 by Morgan Stanley & Co. Inc. and trade on the American Stock Exchange. They have a feature that prevents the existence of significant discounts of premiums to net asset value. Moreover, they can be used to conveniently and effectively achieve international diversification.


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