S&P Global Broad Market Index
What it is:
How it works/Example:
The S&P Global BMI covers approximately 11,000 companies from 46 countries and is converted daily into seven different currency amounts: USD, Euro, GBP, JPY, AUD, CAD and LCL.
The S&P Global BMI is comprised of the S&P Emerging BMI and the S&P Developed BMI. This means the S&P Global BMI includes both emerging and developed countries in its composition.
The S&P Global BMI is also one of the three indices from the S&P Global Equity Index series. The other two, S&P Frontier BMI and the S&P/IFCI, cover frontier markets and emerging markets, respectively.
To be considered for inclusion in the index, all listed stocks within the constituent country must have a float market capitalization of at least $100 million. For a country to be admitted, it must be politically stable and have legal property rights and procedures, among other criteria.
Why it Matters:
The S&P Global BMI can be used as a benchmark for the global equities portion of an investor's portfolio and to track the performance of a specific emerging/developing markets stock, emerging/developing markets mutual fund, or emerging/developing markets ETF.
Though there is no ETF that directly tracks the S&P Global BMI, an investor may consider simply investing in the iShares S&P Global 100 Index Fund (NYSE: IOO) to increase exposure to several different regional markets.
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