Frontier markets are not as connected to each other as emerging and developed markets, which are more closely tied to the global economy – the MSCI Frontier Market Index has exhibited a low correlation to both the MSCI Emerging Markets Index and the MSCI World Index.

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Speaking of MSCI, FTSE’s promotion of Kuwait is stoking speculation that MSCI could promote the country to emerging markets status as well. However, investors will have to wait until next June to see if the index provider even puts the country on its list for possible inclusion in the widely followed MSCI Emerging Markets Index.

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Tom Lydon’s clients own shares of VWO.