This ETF Bets on Big Profits Out of Africa

Another week, another frontier market ETF. Today it is the Market Vectors Africa Index ETF(AFK Quote).

Until now, investing in Africa with an investment product meant a disproportionately large weight to South Africa -- but not so with AFK. South Africa figures prominently at 25%, but Nigeria weighs in at 32% (a combination of 25% of companies actually listed in Nigeria and 7% companies listed elsewhere deriving at least half of its revenue from Nigeria) and is the largest country.

Egypt is allocated at 13%, Morocco 11%, Equatorial Guinea at 6% and the rest are too small to move the needle.

Not surprisingly, the financial sector is the largest at 33%, since every country has at least one big bank. Basic resources is the second-largest, at 18%, as mining is a significant economic catalyst for many countries. ...