ETF Trends
ETF Trends

Van Eck launched the anticipated Africa focused exchange traded fund (ETF), launched on the NYSE Arca.

Market Vectors Africa Index (AFK) allows investors easy, one-stop access to the ever-growing, untapped market in Africa. The ETF tracks the Dow Jones Africa Titans 50 Index, a pan-African index. The expense ratio is 0.83%.

Nigeria is the top-weighted country, with 25.2% of the holdings. South Africa is the second-largest at 24.7%, followed by Egypt at 13.1% and Morocco at 11.4%. Banks are the top sector, at 33.7%. Basic resources follow at 18.2%; oil and gas at 13.5% and telecommunications at 10.2%.

There are other funds that have launched containing African exposure, particularly in the emerging and frontier markets area, but this is the most pure to date in an ETF.

  • Claymore/BNY Mellon Frontier Markets (FRN)
  • Powershares MENA Frontier Countries Portfolio (PMNA)
  • iShares MSCI South Africa Index (EZA)

Many are anticipating Africa to be turning a corner because of debt reduction, strong commodity prices and increased quality of economic management.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. 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.