At least five frontier market ETF are planned for release from Invesco PowerShares Capital Management, WisdomTree Investments Inc., and Van Eck Securities Corp.
The emerging stock markets like Brazil, India, and China are becoming more correlated with developed markets. As a result of this it, makes sense to move some of your investments to the next growth opportunity of frontier stock markets.
WisdomTree will be creating a Middle East Dividend Fund that will follow the WisdomTree Middle East Dividend Index. WisdomTree follows the dividends, and this is a weighted index that will measures the performance of Middle East companies that pay increasing regular cash dividends.
The PowerShares MENA Frontier Countries Portfolio will follow an frontier index called the Middle East and Africa Frontier Countries Index. The index provider has yet to be named.
Van Eck is creating the Market Vectors Africa ETF, Market Vectors Global Frontier ETF and Market Vectors Gulf States ETF. No index provider has been named for them either.
And while retail investment products that give investors access to such frontier stock markets are still relatively new, it is projected that investors will warm to frontier ETFs.
As emerging stock markets become more developed, frontier markets should be included in investors portfolio mix.