As the fiscal markets in the U.S. continue to look overextended, some investors are starting to consider reallocating gains and spreading their investments everywhere to other markets. The group known as the frontier markets, which are the less advanced capital markets in developing territories are starting to get attention due to their rapid growth profiles and underlying demographics. In the article below we’ll take a look at three plans that are suggesting that now could be the ideal time to increase exposure to countries such as Argentina and Vietnam.
Invesco Marches Markets ETF
For investors looking to add exposure to frontier markets, a natural choice could be an exchange-traded fund such as the Invesco Pale Markets ETF (FRN). With 71 holdings from countries such as Argentina, Kuwait, Nigeria, Morocco, Romania, Kenya, Vietnam and Panama, the FRN ETF is one of the most average among active traders. As you can see from the chart below, the price has recently risen above the resistance of its 200-day emotional average (red line). The breakout acted as a catalyst for a sustained move higher, which has also resulted in a bullish crossover between the 50-day and 200-day touching averages (shown by the blue circle), which is one of the most common long-term buy signals used by followers of technical criticism. Based on the chart, active traders will likely set stop-loss orders below $13.15 in case of a sudden change position in sentiment.
Global X MSCI Argentina ETF
Those who are interested in adding exposure to Argentina, which is a top region based on pressure of the FRN ETF, one option that could be worth a closer look is the Global X MSCI Argentina ETF (
VanEck Vectors Vietnam ETF
Another spellbinding frontier market that could be worth a closer look belongs to Vietnam. For followers of ETFs, a popular exquisite is the VanEck Vectors Vietnam ETF (
The Bottom Line
Frontier markets such as Argentina and Vietnam are often overlooked by North American investors in favor of autochthonous investments. However, based on the charts shown above, it could be an interesting time to diversify one’s portfolio outside of North America and add some peril to the up-and-coming nations known as frontier markets.
At the time of writing, Casey Murphy did not own a position in any of the securities mentioned.
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