The FM Frontier Markets and Emerging Markets ETF is managed by BlackRock Fund Advisors (BFA), one of the largest and most respected asset management firms globally. Launched with the objective to provide exposure to frontier markets and select emerging markets, the fund seeks to invest in equities and depositary receipts tied to these markets. BFA employs an active management approach, utilizing optimization techniques relative to the benchmark, MSCI Frontier and Emerging Markets Select Index, to navigate the unique challenges and opportunities presented by these markets. While the fund may materially differ in performance from its benchmark, BFA aims to make strategic investment decisions in the best interest of the fund's objective. Additionally, the fund may utilize various securities and instruments, including futures, options, and swaps, to optimize its portfolio, and it has the flexibility to temporarily deviate from its typical investment process when deemed necessary by BFA.
The FM Dividend ETF focuses on investments in frontier and select emerging markets, offering potential for growth but with a unique dividend distribution profile. Unlike many dividend-focused ETFs, FM's primary objective is not income generation but rather capital appreciation in these less mature and less liquid markets. As such, dividend distributions for FM can vary significantly based on the individual dividend policies and performances of companies within the fund's portfolio. Investors considering FM should prioritize its growth potential and diversification benefits, with dividend returns being a secondary consideration in this frontier and emerging market-focused ETF.
Tracking the frontier and select emerging markets is the primary objective of the iShares Frontier and Select EM ETF. This actively managed exchange-traded fund (ETF) seeks to invest at least 80% of its net assets in equity securities of issuers economically tied to these markets or in depositary receipts representing such securities. Frontier markets represent the smallest, least mature, and least liquid investable equity markets, while select emerging markets are chosen from the lower size spectrum of emerging markets. iShares Frontier and Select EM ETF does not aim to replicate the performance of a specific index but utilizes optimization techniques relative to its benchmark, the MSCI Frontier and Emerging Markets Select Index. Consequently, the fund's performance may materially differ from that of the benchmark, and it may also invest in various other securities and instruments, including futures, options, swap contracts, and cash equivalents, to achieve its investment goals.
The correlation aspect of the iShares Frontier and Select EM ETF (FM) is an essential factor in understanding its performance in relation to frontier and select emerging markets. As FM focuses on investments in these markets, its correlation with specific economic conditions and geopolitical factors in these regions can significantly impact its returns. Investors often assess FM's correlation with various economic indicators and emerging market trends to make informed investment decisions.
The FM Sector ETF aims to achieve its investment objective by primarily investing at least 80% of its net assets in equity securities of issuers economically tied to frontier markets and issuers economically tied to emerging markets. Frontier markets are typically characterized by their smaller, less mature, and less liquid equity markets, while the emerging markets targeted by the fund are selected from the lower size spectrum, signifying lower gross national income per capita and total stock market capitalizations compared to broader emerging markets. As of May 15, 2023, the Benchmark for this ETF included securities from countries or regions such as Bahrain, Bangladesh, Colombia, Egypt, Estonia, Jordan, Kazakhstan, Kenya, Lithuania, Morocco, Nigeria, Oman, Pakistan, Peru, the Philippines, Romania, Slovenia, Sri Lanka, and Vietnam. This actively managed ETF utilizes optimization techniques to provide exposure to these markets, potentially resulting in performance variations compared to the Benchmark. Additionally, the fund may invest in various securities and instruments, including futures, options, swap contracts, and cash equivalents, all while occasionally deviating from its usual investment process in the best interest of the fund.
The exposure characteristic of the iShares Frontier and Select EM ETF emphasizes its focus on frontier and select emerging markets, offering investors access to some of the smallest, least mature, and least liquid investable equity markets. The ETF seeks to invest in issuers economically tied to these markets, including countries such as Bahrain, Bangladesh, Colombia, Egypt, Estonia, Jordan, Kazakhstan, Kenya, Lithuania, Morocco, Nigeria, Oman, Pakistan, Peru, the Philippines, Romania, Slovenia, Sri Lanka, and Vietnam, as defined by the MSCI Frontier and Emerging Markets Select Index (the Benchmark). It is actively managed and aims to provide exposure to these markets while considering regulatory requirements, market limitations, and repatriation restrictions, potentially resulting in performance differing from the Benchmark. The ETF may also invest in other securities, including futures, options, and swap contracts, to achieve its investment objectives, offering investors a unique opportunity to tap into the growth potential of frontier and select emerging markets.
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