The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.
BANKING

ETF Providers Jump Into MENA Funds

Exchange traded fund providers are launching the first wave of ETFs focused on frontier markets.

Claymore Securities last week became the first firm to launch a frontier markets ETF and Van Eck Global, Invesco PowerShares and Wisdom Tree Investments have funds in filing. The funds are also known as MENAs because they invest mainly in the Middle East and North Africa.

Jeff Ptak, director of exchange-traded security research at Morningstar, said firms are lining up to invest in the region because it is relatively untapped. "Frontier markets are starved for capital and uncorrelated to the developed markets. It is a relatively untouched region and that is an attribute prized by asset allocators," said Ptak. He added that because exposure to frontier markets on the major indexes is nominal at best there are many opportunities for investors.

Van Eck has three Market Vectors ETFs in filing--one focused on Africa, one on the Middle East and another targeting all frontier markets. The PowerShares MENA Frontier Countries and Wisdom Tree Middle East Dividend ETFs both focus on Middle Eastern and North African countries such as Egypt, Jordan, Nigeria and the United Arab Emirates. The Claymore/BNY Frontier Select DR ETF targets global frontier markets and is benchmarked to the BNY Frontier Select DR Index.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree