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.
With 3 ETFs traded on the U.S. markets, Frontier Markets ETFs have total assets under management of $1.05B. The average expense ratio is 0.78%. Frontier Markets ETFs can be found in the following asset classes:
The largest Frontier Markets ETF is the VanEck Vectors Vietnam ETF VNM with $536.46M in assets. In the last trailing year, the best-performing Frontier Markets ETF was FM at 37.46%. The most recent ETF launched in the Frontier Markets space was the Global X MSCI Nigeria ETF NGE on 04/03/13.