Frontier Market ETFs Diverge from the Pack

Additionally, the frontier markets may provide another layer of diversification as the asset class exhibited some low correlation due to their more idiosyncratic risks.

“Frontier-markets funds have been less volatile (as measured by the rolling three- and five-year annualized standard deviation of returns) than the MSCI Emerging Markets Index,” Oey said.

FM has increased 2.1% over the past week and was up 1.6% Wednesday after the Federal Reserve’s announcement. On the other hand, the MSCI Emerging Markets Index dipped 0.9% over the past week and was 1.2% lower after the Fed.

iShares MSCI Frontier 100 ETF

For more information on the frontier economies, visit our frontier markets category.

Max Chen contributed to this article.