“In 4Q17, GDP growth picked up across several frontier markets, including Nigeria, Senegal, Zambia, Vietnam, Armenia, Georgia, Belarus, Costa Rica and Jamaica, while economic activity slowed in Jordan, Iraq, El Salvador, Honduras, Mongolia and Namibia,” according to Fitch.
Argentina could be promoted to emerging markets status when index provider reveals its market classification later this year. The frontier markets are characterized by high volatility and are more illiquid than more developed markets. Investors may also contend with political instability and other risks.
Still, FM’s three-year standard deviation of 11.57% is below the comparable metric on the MSCI Emerging Markets Index.
For more information on the ETF market, visit our ETF performance reports category.