Barclays releases Emerging Markets Optimiser linked to ETF

The EMO bases returns on the iShares MSCI Emerging Market index fund, an ETF which provides exposure to 21 emerging markets, with heavy weighting to the BRIC markets. Using a risk adjustment strategy of dynamic allocation, EMO seeks to manage market volatility while retaining the emerging market sector's growth potential. Broadly, the Optimiser decreases its exposure to the iShares MSCI Emerging Market ETF when it becomes more volatile, and increases when conditions are calmer. By adjusting its exposure to the index fund on a daily basis, Barclays says the EMO effectively smoothes ...