When examining emerging market ETFs, take a look at where that kind of money is going. By putting the essential building blocks to a strong society in place early, those economies may be best poised to power ahead over the long haul.
Interestingly, some countries in the Middle East and Africa have among the highest levels of education spending relative to GDP: Zimbabwe spends 11% of GDP, Saudi Arabia spends 9.3% and Namibia spends 7.9%. When it comes to IT spending, Morocco spends 12.5% of GDP, South Africa spends 10.1%, Malaysia spends 9.7% and Hong Kong spends 9.2%.
Maybe the emerging markets have been paying closer attention than we thought!
With that in mind, consider ETFs like:
- Market Vectors Gulf States (NYSEArca: MES)
- Market Vectors Africa (NYSEArca: AFK)
- PowerShares MENA Frontier Countries (NYSEArca: PMNA)
For more information on global economies, visit our global ETFs category.
Max Chen contributed to this article.