Frontier markets have lower valuations and higher income yields, reports Neena Mishra for Zacks. As emerging markets continue to close the gap with developed markets, frontier economies have become a new way for investors to diversify to gain risk adjusted returns over the long term. Some analysts say today’s frontier market will be tomorrows emerging market.

Other frontier market ETFs:

  • Market Vectors Africa Index ETF (NYSEArca: AFK)
  • Market Vectors-Gulf States (NYSEArca: MES)
  • Guggenheim Frontier Markets ETF (NYSEArca:  FRN)
  • PowerShares MENA Frontier Countries ETF (NYSEArca: PMNA)

PowerShares MENA Frontier Countries ETF

Tisha Guerrero contributed to this article.