The Next Generation of Emerging Market Investing

To animal lovers, a civet is a cat-like creature that kind of looks like a cross between a leopard, a raccoon and a weasel. And it’s unfortunately known for its funky smell. To investors, “CIVETS” is an acronym for Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa. These countries are said to be the middle ground of emerging markets between the larger BRICs and the riskier Frontier markets; at least that’s how HSBC Strategist Phil Poole describes them.

So what exactly is the case for putting your money into the CIVETS countries?

“The underlying theme is demographics,” Poole says, as he points to the basket of nations that is home to 600 million people with an average age of 26. These people are hungry to “move up the consumption curve” be it in the form of better food, clothes, phones, a car or a house, Poole says.

See the below “Breakout Video” to take a walk through the CIVETS, country by country.

Related ETFs: iShares MSCI Emerging Markets Index (NYSE:EEM), PowerShares MENA Frontier Countries (NYSE:PMNA), Market Vectors Colombia ETF (NYSE:COLX), Market Vectors Indonesia Index ETF (NYSE:IDX), Market Vectors Vietnam ETF (NYSE:VNM), Market Vectors Egypt Index ETF (NYSE:EGPT), iShares MSCI Turkey Invest Mkt Index (NYSE:TUR), iShares MSCI South Africa Index (NYSE:EZA), iShares FTSE China 25 Index Fund (NYSE:FXI).

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