This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Four Frontier Market ETFs Worth a Look

Stocks in this article: FRN MES AFK PMNA


NEW YORK ( TheStreet) -- Frontier market ETFs have been gaining investor attention as many seek to diversify portfolios and gain exposure to nations and regions that are up and coming, and for good reason.

The actual definition of a frontier market is somewhat ambiguous, but they do offer investors the ability to access parts of the world that are likely to witness rapid economic growth in terms of GDP. Another reason to consider frontier markets is due to their low, to no, correlation with emerging and developed markets. This lack of correlation shelters these markets from the wrath that has been brought on by the sovereign debt crisis seen in developed markets throughout Europe as well as the socioeconomic climates of both the developed and developing markets.

Lastly, frontier markets are worth a look due to their vast supply of natural resources and commodities, such as oil and gold, which are likely to be highly sought after in the coming future.

The most common frontier market regions include Africa, more specifically Egypt and South Africa, the Persian Gulf and Middle East, nations like Kazakhstan and the United Arab Emirates, parts of Eastern Europe, like Poland and parts of Latin America like Bolivia, Peru and Chile.

Some ways to play these markets include the following:

  • Claymore/BNY Mellon Frontier Markets ETF (FRN), which holds an expense ratio of 0.65%, a market capitalization of $6.4 billion and enables one to gain exposure to Egypt, Colombia, Kazakhstan, Chile, Poland, Lebanon, Nigeria, Peru and Oman. The ETF holds 46 stocks and has exposure to financials, metals and mining and telecommunications.
  • Market Vectors Gulf States ETF (MES), which holds an expense ratio of 0.98%, a market capitalization of $4.9 billion and is primarily focused on the Middle East and Persian Gulf. Some of the nations represented include Kuwait, Qatar, the United Arab Emirates and Oman. The ETF holds 41 stocks and is heavily concentrated on financials.
  • Market Vectors Africa ETF (AFK), which holds an expense ratio of 0.83%, a market capitalization of $6.2 billion and holds 50 stocks, with its top holding in the United Kingdom. The ETF gives exposure to South Africa, Morocco, Nigeria and Egypt, in addition to Canada, the United Kingdom and Kuwait. The ETF holds 50 stocks focused on telecommunications, commodities and financials.
  • PowerShares MENA Frontier Countries (PMNA), which holds an expense ratio of 0.70%, a market capitalization of $4.8 billion and is solely concentrated on the Middle East and Persian Gulf. The ETF holds 35 stocks and gives exposure to Kuwait, Jordan, the United Arab Emirates, Morocco, Egypt and Oman. It differs from MES, in that MES has holdings outside of the Middle East.

    1 of 2

    Select the service that is right for you!

    COMPARE ALL SERVICES
    Action Alerts PLUS
    Try it NOW

    Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

    Product Features:
    • $2.5+ million portfolio
    • Large-cap and dividend focus
    • Intraday trade alerts from Cramer
    • Weekly roundups
    TheStreet Quant Ratings
    Try it NOW
    Only $49.95/yr

    Access the tool that DOMINATES the Russell 2000 and the S&P 500.

    Product Features:
    • Buy, hold, or sell recommendations for over 4,300 stocks
    • Unlimited research reports on your favorite stocks
    • A custom stock screener
    • Upgrade/downgrade alerts
    Stocks Under $10
    Try it NOW

    David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

    Product Features:
    • Model portfolio
    • Stocks trading below $10
    • Intraday trade alerts
    • Weekly roundups
    Dividend Stock Advisor
    Try it NOW

    Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

    Product Features:
    • Diversified model portfolio of dividend stocks
    • Alerts when market news affect the portfolio
    • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
    Real Money Pro
    Try it NOW

    All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

    Product Features:
    • Real Money + Doug Kass Plus 15 more Wall Street Pros
    • Intraday commentary & news
    • Ultra-actionable trading ideas
    Options Profits
    Try it NOW

    Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

    Product Features:
    • 100+ monthly options trading ideas
    • Actionable options commentary & news
    • Real-time trading community
    • Options TV
    To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
    Submit an article to us!

    Markets

    DOW 17,804.80 +26.65 0.15%
    S&P 500 2,070.65 +9.42 0.46%
    NASDAQ 4,765.38 +16.9840 0.36%

    Brokerage Partners

    Rates from Bankrate.com

    • Mortgage
    • Credit Cards
    • Auto

    Free Newsletters from TheStreet

    My Subscriptions:

    After the Bell

    Before the Bell

    Booyah! Newsletter

    Midday Bell

    TheStreet Top 10 Stories

    Winners & Losers

    Register for Newsletters
    Top Rated Stocks Top Rated Funds Top Rated ETFs