The Claymore/BNY Mellon Frontier Markets ETF has surpassed USD130m in total assets.
The fund launched in June 2008 and trades on the NYSE Arca.
The fund seeks investment results that correspond generally to the performance, before the fund’s fees and expenses, of an equity index called the BNY Mellon New Frontier DR Index.
Currently, the index contains 47 constituents from 15 countries, including Argentina, Chile, Colombia, Czech Republic, Egypt, Georgia, Kazakhstan, Lebanon, Nigeria, Oman, Pakistan, Peru, Poland, Qatar and Ukraine.
Sectors currently represented in the index include financials, utilities, energy, telecom, materials, industrials, consumer staples and consumer discretionary.
The expense cap for the fund is 0.65 per cent.
“Unlike more developed or emerging economies, frontier markets offer risk-tolerant investors a source of untapped economic potential,” says Steven A. Baffico, senior managing director and head of US retail for Claymore Securities. “Investors are recognising the potential growth opportunities many of these markets currently offer, such as the early development of effective harvest and management of natural resources, advancing their sovereign balance sheets, trade surpluses, infrastructure expansion, rising per capita GDP and the corresponding growth of the consumer. FRN offers investors the benefit of accessing these investment themes.”
“Investors and managers continue to seek new ways to diversify their portfolios during these times of market uncertainty,” adds Michael Cole-Fontayn, chief executive officer of BNY Mellon’s depositary receipts group. “It wasn’t so long ago that people considered Brazil, Russia, India and China as ‘frontier markets’. Over the past ten years, we’ve seen those countries become major drivers of global economic growth.”