InvescoPowerShares has introduced a new exchange-traded fund (ETF) that will track frontier markets in the Middle East.
The PowerShares MENA Frontier Countries Portfolio (PMNA) will follow the Nasdaq OMX Middle East North Africa Index.
Frontier markets generally cover the least developed countries within emerging market economies. The stocks from these tiny nations are subject to a range of unique risks including political instability, hyperinflation and natural disasters, along with food and power shortages.
Countries represented inside PMNA include Abu Dhabi, Egypt, Morocco, Oman, Lebanon, Jordan, Kuwait, Bahrain, Qatar and the United Arab Emirates. The stock index is float-adjusted market-capitalization weighted.
Top holdings in the fund are Arab Bank, Emaar Properties and National Industries Group S.A.K. Regarding country weightings, Egypt, Kuwait and Jordan represent just over 50 percent of the fund.