There has been a lot of discussion about this issue in the last years. Dual-class setups (at least for new IPOs) are penalized now by some index providers.
Ahh, thank you. That makes much more sense. So it's not that ETFs are specifically prohibited from purchasing them. Rather, if index providers exclude issuers who have a dual-share structure from their indices then any funds that track to an index wouldn't be purchasing stock in those issuers.
I think it's important to note that many ETFs aren't index-tracking so even though index providers may exclude the issuers with several share classes that doesn't mean the stock will be shunned by all ETFs.
I think it's important to note that many ETFs aren't index-tracking so even though index providers may exclude the issuers with several share classes that doesn't mean the stock will be shunned by all ETFs.