Pakistan ETF Can Offer Investors Potential Growth Opportunity

It’s been a seemingly long road to recovery for emerging markets (EM). That said, growth opportunities are plenty for investors who can find them, such as in the country of Pakistan.

Certain countries were able to respond to the pandemic better than others, staving off COVID-19’s economic effects. Swift response with government regulation paired with global vaccination certainly helped Pakistan’s case.

“A strong economic recovery has gained hold since summer 2020, benefiting from the authorities’ multifaceted policy response to the unprecedented shock,” The News reports. “At the same time, external pressures also started to emerge in 2021, including a widening current account deficit and depreciation pressures on the exchange rate, which also reinforced domestic price pressures.”

The current year will feature more recovery, giving investors a change to capitalize on growth opportunities in Pakistan.

“The recent policy adjustment was appropriate to address these challenges and maintain economic stability,” the report says further. “The economy is set to continue recovering in FY2022, with real GDP growth projected at 4 per cent, while inflation is expected to pick up this year before gradually slowing down.”

PAK Your Portfolio With Growth

Given the renewed interest in emerging markets, one ETF to consider is the Global X MSCI Pakistan ETF (PAK). It gives targeted exposure to the country’s equities in the convenience of an ETF wrapper.

PAK seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI All Pakistan Select 25/50 Index. The underlying index is designed to represent the performance of the broad Pakistan equity universe.

The fund’s sector breakdown includes a primary focus on materials, which comprises about 35% of the fund’s net assets. Next up are the financials and energy sectors, which make up 26% and 22%, respectively.

Overall, PAK provides investors with:

  1. Efficient access: Efficient access to a broad basket of Pakistani securities.
  2. Targeted exposure: The fund targets exposure to a single country.
  3. Frontier market exposure: Frontier markets are among the highest growth potential economies in the world.

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