Three Reasons Frontier & EM Equities Are Not Created Equal

By: ETFdb
With all the turmoil in emerging markets recently, some investors may be especially wary of investing in so-called frontier markets, traditionally the riskiest areas of the emerging world. But investors shouldn’t assume that frontier markets are the same as their emerging market counterparts. Just as I view emerging markets as a strategic asset class worth having some exposure to, frontier markets are a separate asset class deserving of their own strategic allocation. Here are three reasons why I view frontier markets this way. Frontier markets have experienced more robust growth than emerging markets. Unlike their larger emerging market counterparts, many frontier markets are experiencing no slowdown in growth. In fact, while frontier markets, which are mostly concentrated in the Middle East and Africa, are small, they have exhibited consistently strong gross domestic product (GDP) growth in recent years. Economists expect this trend to continue due to frontier markets’ favorable demographics [...] Click here to read the original article on ETFdb.com. Related Posts: No Related Posts
With all the turmoil in emerging markets recently, some investors may be especially wary of investing in so-called frontier markets, traditionally the riskiest areas of the emerging world. But investors shouldn’t assume that frontier markets are the same as their emerging market counterparts. Just as I view emerging markets as a strategic asset class worth having some exposure to, frontier markets are a separate asset class deserving of their own strategic allocation. Here are three reasons why I view frontier markets this way. Frontier markets have experienced more robust growth than emerging markets. Unlike their larger emerging market counterparts, many frontier markets are experiencing no slowdown in growth. In fact, while frontier markets, which are mostly concentrated in the Middle East and Africa, are small, they have exhibited consistently strong gross domestic product (GDP) growth in recent years. Economists expect this trend to continue due to frontier markets’ favorable demographics [...]

Click here to read the original article on ETFdb.com.

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