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Each index provider produces sub-indices for every strategy with dissimilar outcomes.
On Tuesday, Greece became the first developed nation since 2007 to be downgraded to emerging-market status by index provider MSCI.
The more important question is the direction of the market measured by the index, and no index provider has any control over that.
"As a large index provider, we have to be invested in these companies," Lori Heinel, the deputy global chief investment officer for State Street, said in an interview.
MSCI, an index provider, requires a frontier market to have two listed firms that meet the required market capitalisation and liquidity levels, for example.
It was not helped by news that index provider FTSE Group was tightening its rules so that 25% of a company's shares must be in public hands, up from 15%.
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What could index providers or fund managers do?
Different managers and index providers include different names.
MSCI, like other index providers, will charge mutual funds for using its indexes.
Should index providers create separate indices for investable and for closed hedge funds?
Of course, index providers have tried to work out how to deal with flaws of this kind in indexing.
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