The EGShares Beyond BRICs ETF (NYSEArca: BBRC) provides combination emerging and frontier markets exposure. Just a couple of months after it debuted last year, BBRC transitioned to the FTSE Beyond BRICs Index in October, allowing the ETF to carry up to 25% frontier markets exposure.
The ETF also excludes Taiwan and the BRIC nations. BBRC features an almost 8% weight to Nigeria, making it the ETF’s sixth-largest country allocation.
In terms of valuation, “Kazakhstan follows Nigeria. Within the Gulf Cooperation Council (GCC), valuations favour Qatar over the UAE after the latter’s recent run, and our screen favours off-index Saudi Arabia over Kuwait. Oman also screens well, as do Pakistan and Bangladesh in Frontier Asia, and Estonia in Frontier Europe. “Off-index Georgia and Rwanda screen well in terms of macro, while political developments will drive Iran, Iraq and Egypt; all three are on our watch list,” said Renaissance Capital.
Pakistan, Oman, Kazakhstan and Bangladesh currently combine for 11.6% of FM’s weight, but Pakistan’s weight in the MSCI Frontier 100 Index is expected to rise to 8.9% following the aforementioned index changes. [Pakistan to be a Bigger Part of This ETF]
iShares MSCI Frontier 100 ETF
