Frontier market ETFs have been gaining investor attention as many seek to diversify portfolios and gain exposure to nations and regions that are up and coming and for good reason.
The actual definition of a frontier market is somewhat ambiguous, but they do offer investors the ability to access parts of the world that are likely to witness rapid economic growth in terms of GDP. Another reason to consider frontier markets is due to their low, to no, correlation with emerging and developed markets. This lack of correlation shelters these markets from the wrath that has been brought on by the sovereign debt crisis seen in developed markets throughout Europe as well as the socioeconomic climates of both the developed and developing markets.
Lastly, frontier markets are worth a look due to their vast supply of natural resources and commodities, such as oil and gold, which are likely to be highly sought after in the coming future.
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