Frontier Markets

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Vietnam’s internal party election is underway with plans to promote economic growth, bolstering the country-specific exchange traded fund and lifting the emerging market benchmark to its largest single-day surge in almost four years. While the broader emerging markets were lower along with global markets on increased economic uncertainty and the slide in oil prices, the […]

Developing markets took the brunt of the global selling pressure, but the weakness may have open opportunities for bargain hunters as some of the cheapest exchange traded funds track the emerging markets. For instance, the Market Vectors Russia ETF (NYSEArca: RSX) shows a 6.99 price-to-earnings ratio and SPDR S&P Russia ETF (NYSEArca: RBL) is trading […]

The previously high-flying frontier markets and related exchange traded funds have been falling behind this year as regional risks finally catch up to the asset class. The iShares MSCI Frontier 100 ETF (NYSEArca: FM) was among the best performers over 2014, but the fund has declined 13.2% year-to-date, underperforming the MSCI Emerging Markets Index by […]

As Pakistan’s reforms begin to produce favorable results, investors can tap into the growing frontier market through a recently launched country-specific exchange traded fund. In April, the Global X MSCI Pakistan ETF (NYSEArca: PAK) began trading. PAK has increased 4.1% and has gathered $5.51 million in assets under management. Bolstering Pakistan’s investment case, the International […]

As investors try to comb the world for the next big market, some may turn to Africa exchange traded funds to capture potentially more rapid growth. There are a number of Africa-focused ETFs that investors can choose from. For instance, the Market Vectors Africa Index ETF (NYSEArca: AFK) weights countries determined by the size of […]

Foreign investors have been piling into the quickly growing Vietnamese economy. Retail investors can also track the southeast Asian market through an exchange traded fund. The Market Vectors Vietnam ETF (NYSEArca: VNM) has increased 10.0% over the past three months. The ETF tracks a large group of locally listed Vietnamese companies, with a heavy emphasis […]

Frontier markets have yet to shed their rough and tumble reputation. Perhaps countries with that designation, but just a year ago, the iShares MSCI Frontier 100 ETF (NYSEArca: FM) was one of the most prominent international exchange traded funds. In the run-up to Qatar and the United Arab Emirates joining the MSCI Emerging Markets Index, […]

Corporations are taking a closer look at frontier markets for investment opportunities. Retail investors can also tap into the pre-emerging economies through frontier markets-related exchange traded funds. According to an A.T. Kearney survey of companies’ investment attitudes, a majority of firms are looking for new opportunities to expand in frontier markets, reports Dan Keeler for […]

Business is booming for single-country exchange traded funds. There are now over 200 such ETFs trading in the U.S. with over $100 billion in combined assets under management. Add the Global X MSCI Pakistan ETF (NYSEArca: PAK) to the list. PAK, the first dedicated U.S.-listed Pakistan ETF, has been a long time coming. New York-based […]

The Market Vectors Vietnam ETF (NYSEArca: VNM) is up 4.3% this year and the lone Vietnam ETF is easily outpacing the iShares MSCI Frontier 100 ETF (NYSEArca: FM), a fund in which Vietnamese stocks account for 3.6%. However, VNM has plunged almost 21% since its September, confirmation the ETF is in a bear market. The […]

Although it is home to just two members of the Organization of Petroleum Exporting Countries (OPEC), the iShares MSCI Frontier 100 ETF (NYSEArca: FM) has not been immune to slumping oil prices. Over the past 90 days, the United States Brent Oil Fund (NYSEArca: BNO) and the United States Oil Fund (NYSEArca: USO) are off […]

At one point during the month, the VIX, an index that measures the U.S. market’s implied volatility, surged to over 26 – nearly two times its average of 14 this year1. U.S. stocks ended the month as the clear winner returns-wise, but they also had some of the highest volatility of any region. Frontier markets […]

To this point in Thursday’s session, just one exchange traded fund has touched an all-time low. That dubious honor belongs to the Global X Nigeria Index ETF (NYSEArca: NGE). Down nearly 2% today, NGE, the lone ETF dedicated to Africa’s largest economy, is now down a staggering 26.4% over the past 90 days, a decline […]

Nigerian stocks and a related country-specific exchange traded fund are trading in a bear market as the slump in the energy market pummeled Africa’s largest oil producer and a depreciating local currency scares away foreign investments. The Global X Nigeria Index ETF (NYSEArca: NGE) has plunged about 29% since its July 10 high. On Friday, […]

Twelve countries are members of the Organization of Petroleum Countries (OPEC), the cartel that accounts for about 40% of global oil output and looms large when it comes to setting prices of the commodity. Three OPEC member nations – Nigeria, Qatar and the United Arab Emirates – are represented in the world of exchange traded […]

Broad emerging market index-based exchange traded funds may be overexposed to developing countries that are arguably more mature and more correlated with developed economies. For instance, the iShares MSCI Emerging Markets ETF (NYSEArca: EEM) and Vanguard FTSE Emerging Markets ETF (NYSEArca: VWO) include a heavy allocation in “mature” emerging economies, writes Tim Atwill, managing director, […]

I’m often on the road, meeting with clients who want our views on where global economies and markets might be headed. One region I have been getting a lot of questions about lately has been frontier markets. You can think of them as “pre-emerging markets,” the emerging markets of tomorrow, the future potential growth engines […]

Vietnam is looking to follow in the footsteps of Qatar and the United Arab Emirates as the Southeast Asian nation pushes index provider MSCI (NYSE: MSCI) for a rare frontier-to-emerging reclassification. Vietnam’s “State Securities Commission has formed a team to study what’s required for an upgrade of the nation’s frontier-market classification,” reports Nguyen Kieu Giang […]

Institutional investors continue to embrace exchange traded funds, using the asset class for increasingly refined and tactical applications. Earlier this year, a study conducted by Greenwich Associates and sponsored by BlackRock (NYSE: BLK), the world’s largest asset manager, 46% of institutional ETF investors surveyed allocate 10% or more of total assets to ETFs with 47% […]

FTSE Group, the indexing unit of the London Stock Exchange, today introduced the FTSE Frontier Markets Index series. Separate from FTSE’s widely followed developed and emerging markets benchmarks, the new frontier series aims to capture performance among large-, mid- and small-cap companies based in frontier markets. FTSE’s new frontier indices will initially include nearly 370 […]

Despite the recent sideways trading, frontier market exchange traded funds have been outperforming other areas of the world and still provide investors access to strong growth opportunities. The iShares MSCI Frontier 100 ETF (NYSEArca: FM) has remained relatively flat over the past three months but the fund increased 16.4% year-to-date. Meanwhile, the iShares MSCI Emerging […]

Frontier markets are on the rise again this year. Even with elevated geopolitical tensions, the iShares MSCI Frontier 100 ETF (NYSEArca: FM) has managed to extend its out-performance of the iShares MSCI Emerging Markets ETF (NYSEArca: EEM). With $791. million in assets under management, FM is the dominant frontier markets ETF, but another frontier fund […]

As Africa’s frontier markets develop, some of those economies are growing into the next generation of so-called African lions that could follow the path of the Asian tigers of the 21st century, potentially providing exchange traded fund investors an attractive growth opportunity. ETF investors can gain exposure to the broad African equities market through the […]

Frontier markets have been gaining attention from market watchers and investors alike in recent months. The MSCI Frontier Markets Index has outperformed its developed and emerging market counterparts so far this year, as investors have been searching for growth and bargains in a slow-growing world where most major asset classes appear fully valued. However, despite […]

Investors are becoming more finicky when it comes to the emerging markets, eschewing broad exposure and scrutinizing countries on a case-by-case basis. With country-specific exchange traded funds, anyone can customize their emerging market exposure. Create Research and Principal Global Investors have found that many investors are looking through individual countries more closely after experiencing broad […]

The Taliban is warning foreign investors to leave Pakistan as clashes between the government and militant fighters escalate. While there are no Pakistan country-specific exchange traded funds, some ETF investors need to be aware of their exposure. “We’re in a state of war,” Shahidullah Shahid, a spokesman for the Tehrik-e-Taliban Pakistan, or TTP, said, according […]

Leading up to the previously announced changes for the MSCI Frontier Markets 100 Index, the underlying index for the $761.9 million iShares MSCI Frontier 100 ETF (NYSEArca: FM), the changes that seemingly got the most attention were the eventual departures of Qatar and the United Arab Emirates. The departures of Qatar and UAE, which are […]

Qatar and the United Arab Emirates join the MSCI Emerging Markets Index on May 30th and over the next several months, the weight of those countries will gradually be reduced in the iShares MSCI Frontier 100 ETF (NYSEArca: FM). With political risk a primary concern when investing in emerging and frontier markets, investors may want […]

Emerging market exchange traded funds provide investors with access to the up-and-coming economies of the world, but most ETFs have a hefty weight to BRIC – Brazil, Russia, India, China – economies. Instead, investors can take a look at so-called beyond BRIC offerings that offer a more focused exposure to developing countries. For instance, the […]

Nigeria is now Africa’s largest economy and with that crown has come increased attention on the potential and peril offered by the OPEC member’s economic story. In a report released earlier this week, Renaissance Capital lauded Nigeria, noting it is one of top frontier markets in the eyes of global investors while highlighting the country’s […]