Claymore Frontier Markets ETF
The new ETF launched by Claymore Securities invests in stocks from over 40 frontier markets. The markets span from Easter Europe, the Middle East, Latin America, Africa, and Asia.
Frontier markets and countries tend to be smaller, not as well researched or well known by investors, and underdeveloped. All of these hold true even by emerging markets standards. Many of these countries importantly also boast rapidly growing economies and are luring investors hungry for untapped returns.
The Claymore Frontier Market ETF will be replicating The Mellon Bank of New York New Frontier DR Index. This index by BOY includes only those companies that maintain float adjusted market capitalizationís that exceed $100 million. They must also have depository receipts that trade on the London Stock Exchange or U.S. exchanges.
Currently, Chile, Poland, and Egypt dominate the index. They have weightings of 21%, 25%, and 18% respectively in the exchange traded fund. Other countries currently represented in the fund include Peru, Kazakhstan, the Czech Republic, Nigeria, Lebanon, and also Pakistan.
In terms of sectors the Frontier Market exchanged traded fund invests in, financials are number one with a nearly 40% weighting. Rounding out the top are telecommunications, materials, energy, utilities and industrials.