Missouri State Treasurer Vivek Malek is gaining international attention after prompting a major shift in global investment strategy. In response to months of direct engagement with Malek and the Missouri State Treasurer’s Office, Vanguard—the world’s second-largest investment firm—has filed with the U.S. Securities and Exchange Commission (SEC) to launch its first-ever Emerging Markets Exchange-Traded Fund (ETF) that excludes Chinese equities.
The move follows an April 14 letter from Treasurer Malek to the managers of Missouri’s MOST 529 Education Savings Plan, urging the creation of a low-cost, China-free international equity option. Citing fiduciary concerns, systemic market risks, and growing regulatory opacity in China, Malek argued that continued reliance on China-inclusive funds was “no longer defensible” for a program that serves nearly 200,000 Missouri families.
The new ETF aligns with warnings Vanguard itself has previously issued in SEC filings, citing heightened legal, regulatory, and geopolitical risks for Chinese companies. The firm has acknowledged that these factors could lead to sanctions, liquidity issues, or loss of value in China-related investments.
Malek plans to continue encouraging public finance leaders nationwide to consider the new ETF as they reassess exposure to China in institutional portfolios.
