FM Profile
The iShares MSCI Frontier and Select Emerging Markets ETF is designed to provide investors with exposure to both frontier and smaller emerging markets. The fund tracks an index that aims to capture the performance of these markets while placing a greater emphasis on the tradability and investability of its constituents compared to broader indices. This approach allows investors to gain targeted access to regions and companies within these markets that exhibit significant growth potential and investment opportunities.
The underlying index focuses on a curated selection of frontier markets, which are typically less developed and emerging markets that are not yet considered fully established but offer unique growth prospects. Additionally, it includes smaller-cap emerging markets that may not be represented in larger, more traditional emerging market indices. By concentrating on these specific segments, the fund provides nuanced exposure to areas with high potential but often limited in broader indices.
The ETF invests at least 80% of its assets in the component securities of the index and other investments with similar economic characteristics. This investment strategy ensures that the fund's performance closely mirrors that of the index, offering a precise representation of the targeted markets. The focus on tradability and investability helps to address liquidity concerns and enhances the ability to execute trades efficiently within these less liquid markets.
Managed by iShares, the fund benefits from the firm's extensive global research and expertise in emerging and frontier markets. iShares' deep understanding of these regions, combined with its rigorous selection criteria, aims to deliver a portfolio that reflects both the growth potential and the specific market dynamics of frontier and select emerging markets. The fund is designed for investors seeking to diversify their portfolios with targeted exposure to these high-growth regions, offering a strategic entry into markets with significant long-term potential.
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