The ETF That's 'in Tune' With the Frontier Markets

The video tutorial introduces FM, an investment option for those interested in frontier markets, which are less established than emerging markets. It highlights the potential for high growth but also high risk. FM's holdings are mainly small caps, with significant investments in countries like Kuwait and Vietnam. Since its 2012 launch, FM has underperformed the MCI Frontier Markets Index but has improved recently. It manages $500 million in assets with a 79 basis point expense ratio and is rated with a yellow light by Bloomberg Intelligence due to liquidity concerns.

What are frontier markets often considered as?

• Established markets

• Emerging markets

• Pre-emerging markets

• Developed markets

Which type of companies make up the majority of FM's holdings?

• Large caps

• Mid caps

• Micro caps

• Small caps

Which of the following countries is NOT a top holding in FM?

• Argentina

• Vietnam

• Brazil

• Kuwait

Since its launch, how has FM performed compared to the MCI Frontier Markets Index?

• It has matched the performance

• It has consistently outperformed

• It has consistently underperformed

• It has trailed but improved recently

What is the expense ratio of FM?

• 120 basis points

• 100 basis points

• 79 basis points

• 50 basis points