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Finding Value in Frontier Markets as Ukraine Crisis Continues
March 06, 2014 at 19:00 PM EST
Investors seeking diversification away from emerging market equities flocked to frontier market (FM) equity funds in 2013. The category is small but growing, amassing a record $3.7 billion last year in mutual funds, ETFs and other investments. Although Frontier funds are a relatively new category within the massive ETF industry, assets allocated to funds offering frontier exposures more than doubled in 2013 and now stand at $835 million. The draw? In the current market environment, investors want potentially higher long-term growth rates, reduced risk through low correlation to U.S. equity markets, and a virtually untapped investment opportunity, to name a few. What’s more, the MSCI FM Index has historically been less volatile than the MSCI EM Index and the S&P 500. While individual companies and even countries can be highly volatile within frontier markets, taking a diversified approach by owning a basket of companies and countries can surprisingly lead to [...] Click here to read the original article on ETFdb.com. Related Posts: No Related Posts
Investors seeking diversification away from emerging market equities flocked to frontier market (FM) equity funds in 2013. The category is small but growing, amassing a record $3.7 billion last year in mutual funds, ETFs and other investments. Although Frontier funds are a relatively new category within the massive ETF industry, assets allocated to funds offering frontier exposures more than doubled in 2013 and now stand at $835 million. The draw? In the current market environment, investors want potentially higher long-term growth rates, reduced risk through low correlation to U.S. equity markets, and a virtually untapped investment opportunity, to name a few. What’s more, the MSCI FM Index has historically been less volatile than the MSCI EM Index and the S&P 500. While individual companies and even countries can be highly volatile within frontier markets, taking a diversified approach by owning a basket of companies and countries can surprisingly lead to [...]
