Frontier markets ETFs invest in the equity of companies outside of the developed and emerging economic development categories. These developing countries are usually considered too small to be emerging markets, and their financial markets are too illiquid for investors. They are considered the riskiest markets, but many analysts believe there are pricing inefficiencies that investors can take advantage of.
Frontier markets ETFs are part of this market segment:
With 8 ETFs traded in the U.S. markets, Frontier Markets ETFs gather total assets under management of $1.12B. The average expense ratio is 0.75%. Frontier Markets ETFs can be found in the following asset classes:
- Equity
The largest Frontier Markets ETF is the iShares MSCI Frontier 100 ETF FM with $499.63M in assets. In the last trailing year, the best performing Frontier Markets ETF was the GULF at 13.92%. The most-recent ETF launched in the Frontier Markets space was the iShares MSCI Argentina and Global Exposure ETF AGT in 04/25/17.