Many exchange traded funds (ETFs) side-stepped the BP debacle through the luck of their design, reports the WSJ Fund Track
. BP shares trade as an ADR in the United States, and many ETFs are restricted to shares of U.S.-based companies.
One ETF that does not have this restriction is iShares S&P Global Energy Sector Index Fund (IXC), according to the paper.
Fewer ETFs are sheltered from the fallout hitting Transocean. Though Standard & Poor's dropped the Zug, Switzerland-based company from its S&P 500 index when it relocated from the Cayman Islands, MSCI still classifies it as a U.S. company.
Sean Hanna, Editor in Chief
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