FM: The Emerging Of Emerging Markets

seekingalpha03-27

The iShares Frontier and Select EM ETF offers exposure to frontier markets, providing a unique layer of global diversification.The ETF's holdings are diversified across various frontier and emerging ...

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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nFM: The Emerging Of Emerging Markets\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-03-27 22:22 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4680724-fm-emerging-of-emerging-markets><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The iShares Frontier and Select EM ETF offers exposure to frontier markets, providing a unique layer of global diversification.The ETF's holdings are diversified across various frontier and emerging ...</p>\n\n<a href=\"https://seekingalpha.com/article/4680724-fm-emerging-of-emerging-markets\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"VWO","symbol_name":"MSCI新兴市场ETF-Vanguard","start_time":0,"source_url":"https://seekingalpha.com/article/4680724-fm-emerging-of-emerging-markets","article_id":"2422691665","we_media_id":null,"thumbnails":["https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1323375651/image_1323375651.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2422691665","pubTimestamp":1711549328,"sourceInfo":{"source_id":"seekingalpha","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"The iShares Frontier and Select EM ETF offers exposure to frontier markets, providing a unique layer of global diversification.The ETF's holdings are diversified across various frontier and emerging m","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"VWO":"MSCI新兴市场ETF-Vanguard","BK4585":"ETF&股票定投概念","FDN":"First Trust Dow Jones Internet I","BK4588":"碎股","BK4550":"红杉资本持仓","BK4581":"高盛持仓","BK4504":"桥水持仓"},"translate_title":"FM：新兴市场的出现","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"VWO":1,"FDN":0.9},"content_text":"The iShares Frontier and Select EM ETF offers exposure to frontier markets, providing a unique layer of global diversification.The ETF's holdings are diversified across various frontier and emerging markets, including Vietnam, Kazakhstan, Egypt, and more.Investing in frontier markets comes with the potential for high returns but also high risks, such as political instability and limited regulatory oversight.   2d illustrations and photos Most people, when they think about investing internationally, think about Europe and other developed regions, or emerging markets like India. Few focus on the emerging of emerging markets at the frontier. A frontier market refers to a developing country not big enough to be considered an emerging market. This segment of the investable landscape is interesting because it provides a different layer of global diversification away from the major countries that drive most international funds. To that end, a good ETF that tracks frontier markets is the iShares Frontier and Select EM ETF (NYSEARCA:FM). FM seeks to offer investors exposure to frontier market equities and select emerging market equities. This fund is intriguing due to its unique investment premise, providing access to markets that are often overlooked by investors. Digging into the ETF's Holdings FM's portfolio is diversified, comprising around 175 stocks from various frontier and emerging markets. The fund's holdings span across countries including Vietnam, Kazakhstan, Romania, Bahrain, Bangladesh, Colombia, Egypt, Estonia, Jordan, Kenya, Lithuania, Morocco, Nigeria, Oman, Pakistan, Peru, Philippines, and Sri Lanka. Holdings include:  JSC KASPI KZ GLOBAL SPONSORED REG: This is a Kazakhstan-based company involved in the e-commerce industry. COMMERCIAL INTERNATIONAL BANK EGYP: As the name suggests, this is a commercial bank based in Egypt. HOA PHAT GROUP: This Vietnam-based group operates in the industrial sector, with a specific focus on steel manufacturing. JOINT STOCK COMPANY NATIONAL GDR: This Kazakhstani company operates in the oil and gas sector. VINHOMES: This is a real estate company based in Vietnam.  JSC Kaspi is the biggest holding at 8.24%. The remaining are all under 3.49%. The top 10 holdings make up 32% of the fund, making it fairly diversified overall. Sector Composition and Weightings The FM ETF's sector allocation is quite diversified. The fund has a high allocation to financials (34.5%), followed by materials (12.04%), real estate (9.92%), and energy (9.16%). The consumer staples sector, which is often considered a defensive sector, holds a 7.73% weight in the fund. Other sectors represented include industrials (6.87%), utilities (6.78%), and communication (5.26%). Sectors like healthcare, consumer discretionary, and information technology have less representation in the FM ETF. ishares.com Peer Comparison: FM vs. Other Similar ETFs Comparing the FM ETF with other similar ETFs can provide valuable insights. One such related ETF is the Vanguard FTSE Emerging Markets ETF (VWO). The FM ETF has an expense ratio of 0.79%, which is considerably higher than VWO’s 0.08% expense ratio. However, it's important to note that FM provides exposure to both frontier and emerging markets, while VWO primarily focuses on emerging markets. The price ratio of FM to VWO shows that FM is showing some relative strength, but overall the funds have performed roughly in line since 2020 (with FM having far more volatility given the smaller-cap nature of its own holdings). stockcharts.com Advantages and Disadvantages of Investing in Frontier Markets Investing in frontier markets like those represented in the FM ETF comes with its unique set of advantages and disadvantages. On the upside, frontier markets offer investors the potential for high returns. They provide an opportunity to invest in fast-growing economies that may be overlooked by other investors. However, the risks associated with investing in frontier markets are high. These markets are often characterized by political instability, lack of liquidity, and limited regulatory oversight. Additionally, the information available on companies in these markets is often limited, making it challenging to make informed investment decisions. To Invest or Not to Invest: The Final Verdict  Investing in the iShares Frontier and Select EM ETF is not a decision to be taken lightly. The fund’s high management fee and the high-risk nature of frontier markets are significant considerations. However, the fund’s unique exposure to frontier and select emerging markets, its performance track record, and its considerable diversification make it an intriguing option for investors willing to take on higher risk for potentially higher returns. It's a fund I'd consider a small buy and hold allocation in.","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2422691665"}