Balchunas Discusses a New Frontier Markets ETF (FM, PMNA, FRN)

Bloomberg ETF analyst Eric Balchunas discusses the new iShares MSCI Frontier 100 Index Fund. Bloomberg Radio’s Catherine Cowdery reports on Exchange Traded Funds.

You can hear the full “Bloomberg” interview: HERE

Related:

iShares MSCI Frontier 100 Index Fund (NYSEArca:FM)

The iShares MSCI Frontier 100 Index Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI Frontier Markets 100 Index.

Top Holdings as of 9/24/2012

  • NATIONAL BANK OF KUWAIT: 8.13%
  • MOBILE TELECOMMUNICATIONS CO: 7.18%
  • BLACKROCK FDS III: 5.36%
  • KUWAIT FINANCE HOUSE: 4.10%
  • NIGERIAN BREWERIES PLC: 3.65%
  • QATAR NATIONAL BANK: 3.46%
  • KAZMUNAIGAS EXPLORA-GDR REGS: 3.44%
  • EMAAR PROPERTIES PJSC: 3.30%
  • MASRAF AL RAYAN: 3.03%
  • QATAR TELECOM (QTEL) Q.S.C: 2.57%

PowerShares MENA Frontier Countries (NASDAQ:PMNA)

The PowerShares MENA Frontier Countries Portfolio (Fund) is based on the NASDAQ OMX Middle East North Africa Indexsm (Index). The Fund will normally invest at least 90% of its total assets in securities that comprise the Index and American Depository Receipts (ADRs)  and Global Depository Receipts (GDRs) based on the securities in the Index. The Index seeks to provide direct exposure to liquid stocks of companies that have the majority of their assets or services residing in MENA frontier market countries, which include Egypt, Morocco, Oman, Lebanon, Jordan, Kuwait, Bahrain, Qatar and United Arab Emirates (Index currently includes the emirates of Dubai and Abu Dhabi). The Fund is rebalanced and reconstituted quarterly.

Top Holdings:

  • EMAAR PROPERTIES PJSC: 8.17%
  • COMMERCIAL INTL BANK: 8.11%
  • QATAR NATIONAL BANK: 7.98%
  • AHLI UNITED BANK: 4.02%
  • BANK MUSCAT SAOG: 3.98%
  • BANQUE CENTRALE POPULAIRE: 3.98%
  • BANQUE MAROCAINE COMMERCE EX: 3.96%
  • ALDAR PROPERTIES PJSC: 3.92%
  • Kuwait Finance House (PN):  3.90%
  • GULF FINANCE HOUSE EC: 3.77%

Guggenheim Frontier Markets (NYSEArca:FRN)

The Guggenheim Frontier Markets ETF (NYSE:FRN), seeks investment results that correspond generally to the performance, before the Fund’s fees and expenses, of an equity index called BNY Mellon New Frontier DR Index (the “Frontier Index”). The Fund will invest at least 80% of its total assets in American depositary receipts (“ADRs”) and global depositary receipts (“GDRs”) that comprise the Index or in the stocks underlying such ADRs and GDRs. The Fund also will normally invest at least 80% of its total assets in securities of issuers from Frontier Market countries (whether directly or through ADRs or GDRs), as defined by BNY Mellon, the Fund’s index provider, from time to time in the manner set forth in the “Principal Investment Strategies” section of the fund’s prospectus. Guggenheim Funds Investment Advisors, LLC, the investment adviser, seeks a correlation over time of 0.95 or better between the Fund’s performance and the performance of the Index. A figure of 1.00 would represent perfect correlation.   The Fund, using a low cost “passive” or “indexing” investment approach, will seek to replicate, before fees and expenses, the performance of the Frontier Index. The Frontier Index tracks the performance of depositary receipts, in ADR or GDR form, that trade on the London Stock Exchange (“LSE”), New York Stock Exchange (“NYSE”), NYSE Arca, Inc. (“NYSE Arca”), NYSE AMEX, and Nasdaq Stock Market (“NASDAQ”) of companies from countries that are defined as the “Frontier Market.” The Index Provider defines Frontier Market countries based upon an evaluation of gross domestic product growth, per capita income growth, experienced and expected inflation rates, privatization of infrastructure and social inequalities.

Top Holdings:

  • ECOPETROL SA- SPONSORED ADR: 9.86 %
  • LAN AIRLINES SA: 8.21 %
  • CIA DE MINAS BUENAVENTURA SA: 7.95 %
  • SOCIEDAD QUIMICA Y MINERA DE C: 6.09 %
  • EMPRESA NACIONAL DE ELECTRICID: 5.28 %
  • BANCO SANTANDER CHILE SA: 4.52 %
  • ORASCOM CONSTRUCTION INDUSTRIE: 4.51 %
  • BANCOLOMBIA SA: 4.44 %
  • GUARANTY TRUST BANK PLC: 4.37 %
  • COMMERCIAL INTERNATIONAL BANK: 4.16 %

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