iShares MSCI Frontier 100 ETF
Expense Ratio: 0.79%
It’s no secret that China is an emerging market powerhouse and has grown into one of the largest economies on the planet over the last few decades. That fact has produced some huge gains for those investors who took the plunge early on and bet on the nation. Just imagine how big your portfolio could have been if you were one of those first adopters.
Well, you don’t have to imagine. The next “Chinas” are out there and ETFs are an easy way to participate in their growth.
Wall Street calls these emerging markets that have not fully emerged “frontier markets.” They include such nations as Vietnam, Nigeria, Croatia and Oman. Typically, these frontier environments are characterized by very fast-growing economies, rich commodity wealth and booming population growth, all combined with very small or hardly-existent equity markets.
Which makes the iShares MSCI Frontier 100 ETF (FM) one of the best ETFs for young investors.
This iShares ETF tracks 104 different firms from various faraway lands, all while providing zero exposure to more traditional “emerging” markets. Think of FM as the complement to its sister iShares ETF, the popular iShares MSCI Emerging Markets (EEM).
The nations FM tracks are only now beginning their economic journeys, which makes the fund tailor-made for young investors with time on their side.