AFK’s index also caps exposure to holdings at 8% for locally listed shares and 4.5% for those listed in an offshore market. For example, Nigerian Breweries, currently one of AFK’s top-10 holdings, could not receive an allocation of more than 8% in the ETF.

The bottom line is Nigeria could soon be a larger part, perhaps the largest, of AFK’s lineup. On the other hand, that may not happen, but that does not mean the ETF should be overlooked.

Like many ETFs heavy on frontier markets, Nigeria’s market classification, AFK is not intimately correlated to U.S. stocks with a correlation to the S&P 500 of just 0.77. Additionally, investors do need to pay up to be involved with AFK as the ETF sports a P/E ratio of just 12.66 and a price-to-book ratio of 1.64, according to Market Vectors data.

AFK Current Country Weights

Chart Courtesy: Market Vectors