@article {Kaiser76, author = {Lars Kaiser}, title = {International Equity Indexes and Public Trust}, volume = {27}, number = {2}, pages = {76--89}, year = {2018}, doi = {10.3905/joi.2018.27.2.076}, publisher = {Institutional Investor Journals Umbrella}, abstract = {This article makes use of a unique dataset accounting for public trust towards alternative institutions within 27 countries, thereby yielding a local perspective on the trustworthiness of governments, the media, and the business environment as a whole. The results indicate that this local perspective adds potential value for forming rational investment decisions in a global setting that are not distorted by foreign perspectives. The author takes the perspective of a U.S. investor by considering U.S. dollar{\textendash}denoted international equity indices and building trust-based portfolios, which are compared to traditional market-capitalization-weighted, GDP-weighted, ΔGDP-weighted, and equal-weighted portfolio schemes. They show that accounting for trust does entail valuable information for international equity allocation, especially with respect to fast-growing emerging economies.TOPICS: Portfolio construction,developed}, issn = {1068-0896}, URL = {https://joi.pm-research.com/content/27/2/76}, eprint = {https://joi.pm-research.com/content/27/2/76.full.pdf}, journal = {The Journal of Investing} }