Skip to main content

Main menu

  • Home
  • Current Issue
  • Past Issues
  • Videos
  • Submit an article
  • More
    • About JII
    • Editorial Board
    • Published Ahead of Print (PAP)
  • IPR Logo
  • About Us
  • Journals
  • Publish
  • Advertise
  • Videos
  • Webinars
  • More
    • Awards
    • Article Licensing
    • Academic Use
  • Follow IIJ on LinkedIn
  • Follow IIJ on Twitter

User menu

  • Sample our Content
  • Request a Demo
  • Log in

Search

  • ADVANCED SEARCH: Discover more content by journal, author or time frame
The Journal of Index Investing
  • IPR Logo
  • About Us
  • Journals
  • Publish
  • Advertise
  • Videos
  • Webinars
  • More
    • Awards
    • Article Licensing
    • Academic Use
  • Sample our Content
  • Request a Demo
  • Log in
The Journal of Index Investing

The Journal of Index Investing

ADVANCED SEARCH: Discover more content by journal, author or time frame

  • Home
  • Current Issue
  • Past Issues
  • Videos
  • Submit an article
  • More
    • About JII
    • Editorial Board
    • Published Ahead of Print (PAP)
  • Follow IIJ on LinkedIn
  • Follow IIJ on Twitter

Frontier Markets: Understanding the Risks

A. Seddik Meziani
The Journal of Index Investing Fall 2020, 11 (2) 43-56; DOI: https://doi.org/10.3905/jii.2020.1.091
A. Seddik Meziani
is the founder and principal of SpyGlass Global and a professor of finance at Monclair State University in the Department of Accounting and Finance, at the Feliciano School of Business in Montclair, NJ
  • Find this author on Google Scholar
  • Find this author on PubMed
  • Search for this author on this site
  • Article
  • Info & Metrics
  • PDF (Subscribers Only)
Loading

Click to login and read the full article.

Don’t have access? Click here to request a demo 
Alternatively, Call a member of the team to discuss membership options
US and Overseas: +1 646-931-9045
UK: 0207 139 1600

Abstract

In the search for performance and diversification, an increasing number of investors are spicing up their portfolios with frontier market exchange-traded funds. Many factors have led them to gradually consider strategic allocations to these areas, not the least of which is the fact that emerging economies have become more correlated with developed economies. This study examines whether these small economies are suitable to the average investor in regard to the size of their markets, liquidity, and risk-adjusted performance. It is concluded that, for now, only their undeniable diversification benefits—an outcome that modern portfolio theory has taught us to highly value—tilt the odds in their favor.

TOPICS: Exchange-traded funds and applications, frontier markets, risk management

Key Findings

  • • Frontier market exchange-traded funds (ETFs) are clearly distinct from their more-developed counterparts, unlike emerging markets, which have become increasingly coupled with developed countries over time. Frontier markets can add meaningful diversification to a portfolio.

  • • The risk-adjusted performance of frontier market ETFs, however, significantly lags that of the SPDR S&P 500 ETF Trust (SPY), a fund used to assess the opportunity cost to invest in these countries in lieu of the United States.

  • • Frontier market ETFs also exhibit high concentration ratios, which could subject them to significant cash outflows from redemptions by a small number of investors.

  • © 2020 Pageant Media Ltd
View Full Text

Don’t have access? Click here to request a demo

Alternatively, Call a member of the team to discuss membership options

US and Overseas: +1 646-931-9045

UK: 0207 139 1600

Log in using your username and password

Forgot your user name or password?
PreviousNext
Back to top

Explore our content to discover more relevant research

  • By topic
  • Across journals
  • From the experts
  • Monthly highlights
  • Special collections

In this issue

The Journal of Index Investing: 11 (2)
The Journal of Index Investing
Vol. 11, Issue 2
Fall 2020
  • Table of Contents
  • Index by author
  • Complete Issue (PDF)
Print
Download PDF
Article Alerts
Sign In to Email Alerts with your Email Address
Email Article

Thank you for your interest in spreading the word on The Journal of Index Investing.

NOTE: We only request your email address so that the person you are recommending the page to knows that you wanted them to see it, and that it is not junk mail. We do not capture any email address.

Enter multiple addresses on separate lines or separate them with commas.
Frontier Markets: Understanding the Risks
(Your Name) has sent you a message from The Journal of Index Investing
(Your Name) thought you would like to see the The Journal of Index Investing web site.
CAPTCHA
This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.
Citation Tools
Frontier Markets: Understanding the Risks
A. Seddik Meziani
The Journal of Index Investing Aug 2020, 11 (2) 43-56; DOI: 10.3905/jii.2020.1.091

Citation Manager Formats

  • BibTeX
  • Bookends
  • EasyBib
  • EndNote (tagged)
  • EndNote 8 (xml)
  • Medlars
  • Mendeley
  • Papers
  • RefWorks Tagged
  • Ref Manager
  • RIS
  • Zotero
Save To My Folders
Share
Frontier Markets: Understanding the Risks
A. Seddik Meziani
The Journal of Index Investing Aug 2020, 11 (2) 43-56; DOI: 10.3905/jii.2020.1.091
del.icio.us logo Digg logo Reddit logo Twitter logo CiteULike logo Facebook logo Google logo LinkedIn logo Mendeley logo
Tweet Widget Facebook Like LinkedIn logo

Jump to section

  • Article
    • Abstract
    • SPICING UP A PORTFOLIO WITH FRONTIER MARKETS
    • RISKS INVESTORS SHOULD BE AWARE OF
    • FRONTIER MARKET ETFs
    • CONCLUSION
    • ADDITIONAL READING
    • ENDNOTES
    • REFERENCES
  • Info & Metrics
  • PDF (Subscribers Only)
  • PDF (Subscribers Only)

Similar Articles

Cited By...

  • No citing articles found.
  • Google Scholar
LONDON
One London Wall, London, EC2Y 5EA
United Kingdom
+44 207 139 1600
 
NEW YORK
41 Madison Avenue, New York, NY 10010
USA
+1 646 931 9045
pm-research@pageantmedia.com
 

Stay Connected

  • Follow IIJ on LinkedIn
  • Follow IIJ on Twitter

MORE FROM PMR

  • Home
  • Awards
  • Investment Guides
  • Videos
  • About PMR

INFORMATION FOR

  • Academics
  • Agents
  • Authors
  • Content Usage Terms

GET INVOLVED

  • Advertise
  • Publish
  • Article Licensing
  • Contact Us
  • Subscribe Now
  • Sign In
  • Update your profile
  • Give us your feedback

© 2021 Pageant Media Ltd | All Rights Reserved | ISSN: 2154-7238 | E-ISSN: 2374-135X

  • Site Map
  • Terms & Conditions
  • Privacy Policy
  • Cookies