However, Egyptian equities are volatile. EGPT has a beta against the S&P 500 of 1.37 and a three-year standard deviation of 33.1%, according to Market Vectors data. By comparison, the three-year standard deviation on the iShares MSCI Emerging Markets ETF (NYSEArca: EEM).
There are other issues to consider as well, such as Egypt has been home to two regime changes since the Arab Spring of 2011. Additionally, Egypt has deep ties to notorious global terrorism groups, including the Islamic State of Iraq and the Levant (ISIL), which is believed to have been active in Egypt since 2011.
Market Vectors Egypt Index ETF
ETF Trends editorial team contributed to this article. Tom Lydon’s clients own shares of EEM.