Optimized Portfolio As Listed Securities - OPALS

AAA

DEFINITION of 'Optimized Portfolio As Listed Securities - OPALS'

A set of exchange-traded funds, created by Morgan Stanley in 1994, that trades on the Luxembourg Stock Exchange. Optimized Portfolio as Listed Securities (OPALS) are available for many of the different Morgan Stanley Capital International (MSCI) indexes. They are generally unavailable to the majority of U.S. investors, because they are not registered with the SEC. Certain OPALS allow U.S. institutional investors to participate; however a $100 million minimum investment is required.

INVESTOPEDIA EXPLAINS 'Optimized Portfolio As Listed Securities - OPALS'

OPALS are often seen as one of several predecessors to the introduction of exchange-traded funds in the U.S. OPALS were introduced on the Luxembourg Stock Exchange because its less restrictive rules allowed Morgan Stanley to offer the shares to retail investors. In 1996, Morgan Stanley introduced World Equity Benchmark Shares (WEBS). These were SEC-registered units, similar to OPALS and available to U.S. retail investors.

RELATED TERMS
  1. Exchange-Traded Fund - ETF

    A security that tracks an index, a commodity or a basket of assets ...
  2. Asset Management

    1. The management of a client's investments by a financial services ...
  3. Hedge Fund

    An aggressively managed portfolio of investments that uses advanced ...
  4. Index

    A statistical measure of change in an economy or a securities ...
  5. Index Fund

    A type of mutual fund with a portfolio constructed to match or ...
  6. Institutional Investor

    A non-bank person or organization that trades securities in large ...
Related Articles
  1. Achieving Optimal Asset Allocation
    Investing Basics

    Achieving Optimal Asset Allocation

  2. Introduction To Fundamentally Weighted ...
    Mutual Funds & ETFs

    Introduction To Fundamentally Weighted ...

  3. 4 Ways To Use ETFs In Your Portfolio
    Mutual Funds & ETFs

    4 Ways To Use ETFs In Your Portfolio

  4. Active Vs. Passive ETF Investing
    Mutual Funds & ETFs

    Active Vs. Passive ETF Investing

comments powered by Disqus
Hot Definitions
  1. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  2. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  3. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  4. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  5. Budget Deficit

    A status of financial health in which expenditures exceed revenue. The term "budget deficit" is most commonly used to refer ...
  6. Floating Exchange Rate

    A country's exchange rate regime where its currency is set by the foreign-exchange market through supply and demand for that ...
Trading Center