{"id":63,"date":"2012-03-30T11:19:07","date_gmt":"2012-03-30T15:19:07","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/2012\/03\/investing-in-frontier-markets\/"},"modified":"2012-03-30T11:19:07","modified_gmt":"2012-03-30T15:19:07","slug":"investing-in-frontier-markets","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2012\/03\/30\/investing-in-frontier-markets\/","title":{"rendered":"Investing in Frontier Markets"},"content":{"rendered":"<div align=\"right\"><script type=\"text\/javascript\">\ntweetmeme_style = 'compact';\n<\/script><br \/>\n<script type=\"text\/javascript\" src=\"http:\/\/tweetmeme.com\/i\/scripts\/button.js\"><\/script>\n<\/div>\n<div><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-28659\" title=\"Investing in Frontier Markets\" src=\"http:\/\/www.investmentu.com\/wp-content\/uploads\/2012\/03\/frontier-markets.jpg\" alt=\"Investing in Frontier Markets\" width=\"220\" height=\"220\" \/><\/p>\n<p>The Guggenheim Frontier Markets ETF (NYSE: FRN) provides an easy and diversified way to capture growth in frontier markets.<\/p>\n<\/div>\n<p>Of the 26 countries I\u2019ve visited, one memory in particular stands out in my mind.<\/p>\n<p>I was in China. Not in Shanghai or Beijing, mind you, but far out west in a rural area where I was called \u201cforeigner\u201d as if it were my name.<\/p>\n<p>One day, at the junction of two dirt roads, I saw the usual activity you found all over the Middle Kingdom during the first decade of the twenty-first century. Saws whizzed and hammers banged as laborers walked around a work site on bamboo scaffolding.<\/p>\n<p>But these guys weren\u2019t putting up fancy skyscrapers or even repairing an old house.<\/p>\n<p>They were building the town\u2019s first street corner \u2013 just a couple of two-story buildings \u2013 and I was witnessing the beginning of a city.<\/p>\n<p>Strangely, the scene was somehow familiar\u2026<\/p>\n<p>My mind immediately flashed to countless western movies I grew up watching. I\u2019m sure you\u2019ve seen them, too.<\/p>\n<p>But this wasn\u2019t \u201cTombstone\u201d and this wasn\u2019t the Old West. This was a different type of frontier.<\/p>\n<h2><strong>I Went Down to the Crossroads\u2026<\/strong><\/h2>\n<p>I know about junctions. My hometown of Kansas City gained importance because it sits where the Kansas and Missouri rivers meet. This new street corner I saw in China was also at a crossroads, and the locals knew that meant a promising future\u2026<\/p>\n<p>As long as they seized the opportunity, that is.<\/p>\n<p>Are you ready to tap into frontier markets? Like the scene I saw, dozens of economies around the world find themselves where two roads meet \u2013 it\u2019s the junction of the road to prosperity and the road to stability.<\/p>\n<p><a title=\"Why Most of the Investment Advice You\u2019ve Heard is Wrong\" href=\"http:\/\/www.investmentu.com\/2012\/January\/investment-advice.html\">The road to prosperity<\/a> is paved by entrepreneurs and visionary leaders. They\u2019re folks who have ambition, but aren\u2019t so selfish that they\u2019ll hurt their country\u2019s cause to preserve their own power.<\/p>\n<p>To get on the road to stability, you need leaders with the maturity to lose an election and keep working hard to build the future. You also need the confidence of citizens to not riot in the streets every time bread prices change.<\/p>\n<p>The <strong>Guggenheim Frontier Markets ETF<\/strong> (NYSE: <a href=\"http:\/\/www.google.com\/finance?q=FRN\" target=\"_blank\">FRN<\/a>) does a nice job of picking countries and companies that allow you to benefit from those key trends.<\/p>\n<p>In the fund we find:<\/p>\n<ul>\n<li>Kazakhstan \u2013 represented by KazMunaiGas, the national natural gas company, and Halyk, a commercial savings bank. Right there we have plays on the central Asian country\u2019s rich resources and its improving business climate.<\/li>\n<\/ul>\n<ul>\n<li>Chile \u2013 FRN holds shares of <strong>Banco Santander Chile<\/strong> (NYSE: <a href=\"http:\/\/www.google.com\/finance?q=SAN\" target=\"_blank\">SAN<\/a>), and for an interesting twist, the fund also threw in <strong>Vina Concha y Toro<\/strong> (NYSE: <a href=\"http:\/\/www.google.com\/finance?q=VCO\" target=\"_blank\">VCO<\/a>), a quiet wine industry giant whose headquarters I\u2019ve visited\u2026 after taking a bus through some of the capital city\u2019s seediest suburbs. Chile\u2019s ecological diversity and copper production make it a tourist and business magnet, and key driver of future Latin American growth.<\/li>\n<\/ul>\n<ul>\n<li>Colombia \u2013 This country used to be synonymous with drugs and violence, but now two of its top companies trade on the <a title=\"NYSE 2012 \u2013 2013 Holiday Schedule\" href=\"http:\/\/www.investmentu.com\/nyse-holiday-schedule.html\" target=\"_blank\">New York Stock Exchange<\/a>. National oil company <strong>Ecopetrol<\/strong> (NYSE: <a href=\"http:\/\/www.google.com\/finance?q=EC\" target=\"_blank\">EC<\/a>) and bank <strong>Bancolombia<\/strong> (NYSE: <a href=\"http:\/\/www.google.com\/finance?q=CIB\" target=\"_blank\">CIB<\/a>) make this nation in transition FRN\u2019s heaviest investment. Colombia totals around 15% of the ETF\u2019s total value.<\/li>\n<\/ul>\n<ul>\n<li>Egypt \u2013 Well, if you\u2019ve been watching the news, you know Egypt is still dizzy from the wild Arab Spring of 2011. Nevertheless, this country is one of the most promising in the bunch. In fact, part of the reason for Egypt\u2019s turmoil has been its large, young workforce, eager to make an impact and transform the nation. FRN profits from the young, online, energized next generation of Egyptians with investments in Orascom Telecom.<\/li>\n<\/ul>\n<p>Orascom isn\u2019t just a market force in the Arab world\u2026 The company has holdings in Bangladesh, Pakistan, Algeria and Zimbabwe.<\/p>\n<p>Are those far enough off the beaten path for you?<\/p>\n<p>To be frank, there are some countries on this list that I haven\u2019t even thought of visiting! Good news is, I don\u2019t have to go there to get in on the action, and neither do you.<\/p>\n<p>The Frontier Markets ETF gives you a way to plant yourself at the crossroads in these places and reap the rewards of getting there before the crowd.<\/p>\n<p>You may not hammer a nail into the first couple of buildings in town, but with FRN in your portfolio, you can be a pioneer in your own right.<\/p>\n<p>Good Investing,<\/p>\n<p>Sam Hopkins<\/p>\n<div>\n<a href=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?a=BHVa64WziiU:zHVkFn2Lc-8:yIl2AUoC8zA\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?d=yIl2AUoC8zA\" border=\"0\"><\/img><\/a> <a href=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?a=BHVa64WziiU:zHVkFn2Lc-8:V_sGLiPBpWU\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?i=BHVa64WziiU:zHVkFn2Lc-8:V_sGLiPBpWU\" border=\"0\"><\/img><\/a> <a href=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?a=BHVa64WziiU:zHVkFn2Lc-8:qj6IDK7rITs\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?d=qj6IDK7rITs\" border=\"0\"><\/img><\/a> <a href=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?a=BHVa64WziiU:zHVkFn2Lc-8:gIN9vFwOqvQ\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?i=BHVa64WziiU:zHVkFn2Lc-8:gIN9vFwOqvQ\" border=\"0\"><\/img><\/a> <a href=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?a=BHVa64WziiU:zHVkFn2Lc-8:F7zBnMyn0Lo\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?i=BHVa64WziiU:zHVkFn2Lc-8:F7zBnMyn0Lo\" border=\"0\"><\/img><\/a>\n<\/div>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~r\/InvestmentU\/~4\/BHVa64WziiU\" height=\"1\" width=\"1\" \/><\/p>\n<p>Article by <a href=\\\"http:\/\/www.investmentu.com\/\" target=\"_blank\">Investment U<\/a> <\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Guggenheim Frontier Markets ETF (NYSE: FRN) provides an easy and diversified way to capture growth in frontier markets. Of the 26 countries I\u2019ve visited, one memory in particular stands out in my mind. I was in China. Not in Shanghai or Beijing, mind you, but far out west in a rural area where I &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.investmacro.com\/forex-news\/2012\/03\/30\/investing-in-frontier-markets\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Investing in Frontier Markets&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-63","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/63","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/comments?post=63"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/63\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/media?parent=63"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/categories?post=63"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/tags?post=63"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}