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%
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.