Frontier markets are on the outer fringe of the international investment community, and are considered less developed than emerging markets.
In addition, they generally involve countries with questionable political and economic stability due to leadership missteps.
Many of these countries are located in the Middle East, Africa, and South America -- which also represent hard-to-reach areas for new capital. As a result, choosing the right region and opportunity can make or break your portfolio.
The largest diversified ETF in this space is the iShares MSCI Frontier 100 ETF (NYSE: FM), which has over $800 million invested primarily in Kuwait, United Arab Emirates, and Qatar equity securities. These three countries make up nearly 58 percent of the total portfolio allocation, ...
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