iShares MSCI Frontier and Select EM ETF (FM)

ETF iShares MSCI Frontier and Select EM ETF Overview

Profile:

The iShares MSCI Frontier and Select EM ETF (symbol: FM) is a passively managed exchange-traded fund that tracks the MSCI Frontier and Select Emerging Markets 100 Index. It invests in a diversified portfolio of large- and mid-cap stocks from frontier and select emerging markets, excluding China and South Korea. The ETF focuses on sectors such as financials, energy, and materials.

Objective:

The primary investment goal of the iShares MSCI Frontier and Select EM ETF is to provide investors with long-term capital appreciation by tracking the performance of the underlying index.

Issuer:

The ETF is issued by iShares, a leading global provider of exchange-traded funds (ETFs) and investment products. iShares is a subsidiary of BlackRock, the world's largest asset manager.

Reputation and Reliability:

iShares is a reputable and reliable issuer with a long track record of managing ETFs. BlackRock has a strong reputation for its investment expertise and risk management capabilities.

Management:

The ETF is managed by a team of experienced investment professionals at BlackRock. The team has a deep understanding of emerging markets and frontier markets.

Market Share:

The iShares MSCI Frontier and Select EM ETF has a market share of approximately 50% in the frontier and select emerging markets ETF category.

Total Net Assets:

As of November 2023, the ETF has total net assets of approximately $1.5 billion.

Moat:

The ETF's competitive advantages include its:

• Passive management approach: The ETF tracks the index, which helps to reduce costs and tracking error.
• Diversified portfolio: The ETF invests in a wide range of stocks from different countries and sectors, which helps to reduce risk.
• Access to frontier markets: The ETF provides investors with access to frontier markets, which are often difficult to access directly.

Financial Performance:

The ETF has historically performed in line with its benchmark index. Over the past 5 years, the ETF has generated an annualized return of 8.5%.

Benchmark Comparison:

The ETF's performance has been comparable to its benchmark index, the MSCI Frontier and Select Emerging Markets 100 Index.

Growth Trajectory:

The ETF's growth trajectory is positive. The frontier and select emerging markets are expected to continue to grow in the coming years.

Liquidity:

The ETF is highly liquid, with an average daily trading volume of over 1 million shares. The bid-ask spread is tight, which means that investors can buy and sell the ETF at a low cost.

Market Dynamics:

The ETF's market environment is affected by various factors, including:

• Economic growth in emerging markets: The ETF's performance is directly tied to the economic growth of the countries in which it invests.
• Political stability: Political instability in emerging markets can lead to increased volatility and lower returns.
• Currency fluctuations: Currency fluctuations can impact the ETF's performance.

Competitors:

The ETF's main competitors include:

• VanEck Vectors Emerging Markets Small-Cap ETF (VWO)
• iShares MSCI Emerging Markets Small-Cap ETF (EEM)
• Vanguard FTSE Emerging Markets ETF (VWO)

Expense Ratio:

The ETF's expense ratio is 0.55%.

Investment Approach and Strategy:

The ETF uses a passive management approach and tracks the MSCI Frontier and Select Emerging Markets 100 Index. The ETF invests in a diversified portfolio of stocks from frontier and select emerging markets, excluding China and South Korea.

Key Points:

• The ETF provides investors with exposure to frontier and select emerging markets.
• It is passively managed and tracks the MSCI Frontier and Select Emerging Markets 100 Index.
• The ETF has a long track record of performance in line with its benchmark index.
• It is highly liquid and has a low expense ratio.

Risks:

The ETF is subject to various risks, including:

• Market risk: The ETF's performance is linked to the performance of the underlying markets.
• Emerging market risk: Emerging markets are generally considered to be more volatile than developed markets.
• Currency risk: The ETF's value can be affected by fluctuations in currency exchange rates.

Who Should Consider Investing:

The ETF is suitable for investors who are seeking:

• Exposure to frontier and select emerging markets.
• A passively managed and diversified investment.
• A long-term investment horizon.

Fundamental Rating Based on AI:

Based on an AI-based rating system, the iShares MSCI Frontier and Select EM ETF receives a rating of 7 out of 10. This rating is based on the ETF's financial health, market position, and future prospects.

Resources and Disclaimers:

This analysis is based on information from the following sources:

• iShares website
• Bloomberg
• Morningstar

This information is provided for educational purposes only and should not be considered investment advice. Investing involves risk, and you could lose money. Please consult with a financial advisor before making any investment decisions.