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.
