ETF investors have a few options to access broad frontier market exposure. For instance, the largest ETF, the iShares MSCI Frontier 100 ETF (NYSEArca: FM), tracks the MSCI Frontier Market 100 Index, which includes country exposure to Kuwait 20.8%, Qatar 18%, UAE 17.9%, Nigeria 11.3%, Argentina 5.4%, Pakistan 4.4%, Kenya 3.7%, Morocco 3.6%, Oman 3.1% and Kazakhstan 2.8%. FM has a 0.79% expense ratio.
The Guggenheim Frontier Markets ETF (NYSEArca: FRN) may have frontier markets as part of its moniker, but the ETF includes significant exposure to emerging economies. Specifically, FRN includes emerging countries Chile 44.1%, Colombia 13.8%, Egypt 7% and Peru 6.6%. The ETF has a 0.7% expense ratio.
The Global X Next Emerging & Frontier ETF (NYSEArca: EMFM) includes country exposure outside of the major emerging BRICs – Brazil, Russia, India and China. While EMFM includes some emerging economies, the ETF also includes frontier markets exposure to Argentina, Bangladesh, Gabon, Georgia, Kazakhstan, Kenya, Kuwait, Laos, Mongolia, Nambia, Nigeria, Oman, Pakistan, Panama, Papua New Guinea, Qatar, Slovakia, Tanzania, UAE and Vietnam. The fund has a 0.58% expense ratio. [An Emerging and Frontier Markets ETF Sandwich]
For more information on the less developed economies, visit our frontier markets category.
Max Chen contributed to this article.