What is a Frontier Market?
Frontier market describes up-and-coming economies that tend to be smaller and less developed than emerging markets like China and India.
How Does a Frontier Market Work?
Frontier markets have a poor population willing to work to thrust itself into a middle class and, with luck, they also have access to a deep cache of natural resources and an appetite for export dollars.
Examples of such economies include Albania, Bangladesh, Botswana, Cyprus, Estonia, Lithuania, Romania and Sri Lanka.
Frontier markets are considered a type of emerging market.
Why Does a Frontier Market Matter?
Investing in these economies is becoming easier, as brokerages are offering more ETFs with exposure to frontier markets. Returns can be very significant on these types of investments, but not without substantial risk. They have less liquidity than developed emerging markets and investors should expect to see returns over the long term, not immediately.
A list of all of the frontier markets classified by the FTSE index company can be found here.
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.
Read This Next
The term stock split may sound like trouble, but in reality, it's a common event that shouldn't intimidate savvy investors. In fact, being part...
Read More →
When you're faced with serious money sucks -- say, unemployment, a new home or the prospect of funding your child's college education -- it...
Read More →
Religion aside, we’ve all heard of the seven deadly sins. Working at a personal finance website as we do, we got to thinking about what the seven deadly...
Read More →
One of gold's allures is its use as a hedge against negative economic outcomes:...
Read More →
Good habits are the key to financial security. If you want to put yourself in position to weather any financial storm, you need to understand and follow only four good habits: 1. Work hard...
Read More →
