Investing in the Last Frontier With Africa ETFs


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Exchange traded fund ( ETF ) investors aren't the only ones finding haven in emerging markets. A major discount retailer is also looking to gain exposure to some of the fastest-growing economies in Africa.

In an attempt to establish itself into the last frontier, Wal-Mart (NYSE: WMT ) wants to acquire Massmart, South Africa's third-largest chain, writes Joshua Brown for CNN Money . Africa is rich in natural resources and may provide labor that is cheaper than south-east Asia, but wary investors are concerned about the continent's high poverty, disease, violence and corruption.

As large international companies set foot in Africa, these companies may be signaling that the potential benefits could outweigh any costs.

For more information on Africa, visit our Africa category .

Investors may access Africa through ETFs, such as:

  • Market Vectors Africa Index (NYSEArca: AFK) . AFK tries to reflect the Dow Jones Africa Titans 50 index, which contains the broadest exposure to Africa. The fund favors the banking sector, which makes up 42% of holdings.
  • iShares MSCI South Africa Index (NYSEArca: South Africa ETF: 10 Things to Watch.]
  • PowerShares MENA Frontier Countries Portfolio (NYSEArca: PMNA) . PMNA provides exposure to North Africa and the Middle East. Jordon and Morocco make up 24% of the fund, and the two countries have the riskiest markets in the region. Kuwait and UAE make up more than 40% of the fund.

Max Chen contributed to this article.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , ETFs

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