Still, frontier market ETFs have been providing investors with some interesting opportunities. Aside from individual shares trading on frontier market stock exchanges, investors might want to diversify their exposure and decrease their risk through an ETF.
The iShares MSCI Frontier 100 Index (NYSEARCA:FM) contains over 100 securities in some of the strongest frontier markets, including: Kuwait, Qatar, Nigeria, Kenya, Kazakhstan, and Vietnam. This frontier market ETF is up roughly 12.5% year-to-date and is down only 1.5% since May 22, when the Fed said it would eventually begin tapering its quantitative easing.
Again, frontier market stocks and ETFs are not for everyone. They are probably best suited for contrarian investors who are comfortable running against the herd. That said, frontier markets can provide ample opportunities for growth for patient investors looking for long-term growth.
This article is brought to you courtesy of John Whitefoot from the Daily Gains Letter.