New S&P Select Frontier Index Could Pave the Way for More ETFs
October 26th at 3:00pm by Tom Lydon
More exchange traded funds (ETFs) could be on the way now that the S&P has launched its new Select Frontier Index. The new index includes 30 of the largest and most liquid components from the broader S&P/IFCG Extended Frontier 150 Index. It has a total market capitalization of $46.93 billion, and individual components must have market capitalizations of at least $100 million; their weights are capped at 10% of the index. Components must also meet certain liquidity requirements. The weight of individual countries is capped at 30% of the index, and no country can be represented by more than five companies, says Heather Bell for Index Universe. The countries included in the new S&P Select Frontier Index and their weightings are:
- Pakistan – 29.0%
- United Arab Emirates – 23.1%
- Jordan – 13.2%
- Vietnam – 11.5%
- Panama – 7.7%
- Kazakhstan – 7.1%
- Colombia – 6.2%
- Bulgaria – 1.1%
- Cambodia – 1.0%
