JPMorgan considers reducing China, India's EM bond index share
JPMorgan is thinking about lowering the country cap in its $200 billion GBI-EM Global Diversified index from 10% to 8.5%.
The move is meant to cut down on heavyweights like China and India, giving smaller, higher-yield countries more of the spotlight.
Change likely to benefit investors
If approved, the change could mean better returns for investors—but also a bit more risk—since more money would flow to countries like Brazil, South Africa, Poland, and Colombia.
Meanwhile, China and India's share would shrink.
For anyone interested in global markets or looking for new investment angles, this could open up fresh opportunities.
JPMorgan is also looking at Saudi Arabia, Philippines
JPMorgan dropped plans to cut China's share even further last year but is eyeing new additions like Saudi Arabia and the Philippines.
Plus, they're launching a new frontier markets bond index covering 21 countries—so there might be even more ways for investors to explore emerging economies soon.