Barclay Global Investors’ iShares MSCI EAFE exchange-traded fund began trading on the American Stock Exchange today, Barclays announced. The fund is the first ETF to track a revamped version of Morgan Stanley Capital International’s EAFE index.

The new provisional EAFE index is similar to the old EAFE index, but instead uses a new free float-adjusting methodology to balance its weightings.

MSCI will be adopting the new methodology for all of its indices by May 31, 2002. In the interim, the firm has established provisional indices for each index.

"The MSCI Provisional EAFE Index already reflects the (new methodology) and therefore provides increased flexibility for investors wishing to transition to the (new methodology) on their own schedule," said Henry Fernandez, CEO of MSCI.

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