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| VietnamETF, Best Frontier Market ETFs |
What are Frontier Markets?
Basically, Frontier markets are a step lower emerging markets. There are a number of factors as: currency issues, a lack of liquidity, financial reporting concerns, or substandard development.
Overall, These frontier markets can be quite volatile, though they can provide investors with big returns, assuming investors are willing to tolerate high levels of risks. Plus, since these are trading at favorable valuations and they have proven to be less impacted by the taper, frontier markets could be solid choices for the current market environment as well.
Frontier Market ETFs
Investors have many choices, example some targeted picks that focus on specific regions or nations. These maybe funds that have a Middle East focus, such as the Market Vectors Gulf States Index ETF (MES) and the WisdomTree Middle East Dividend Fund (GULF), as well as the Market Vectors Vietnam ETF (The FTSE VietnamETF Index) for those looking for single country exposure.
For Vietnam, this nation has seen a stronger economy due to market oriented reform policies, as well as stronger demand from developed nations. The country is also a huge beneficiary of some manufacturing leaving China, suggesting it is well positioned for gains this year.