Indonesia just got kicked out of the index club. Your 'passive' portfolio has a rulebook you never read.

TL;dr: MSCI proposed moving Indonesia from emerging market to standalone status in one step, skipping frontier entirely. Jakarta fell 11% in a day, the worst drop since 1998. If it goes through, passive emerging market funds have to sell their Indonesian holdings on the effective date at whatever price the market gives them. Your index fund follows a rulebook written by someone else, and that rulebook can change your portfolio without you placing a single trade. What happened is...