Last year, FM underwent a thorough strategy recalibration, with the underlying index replaced with the MSCI Frontier and Emerging Markets Select Index on March 1. Thorough strategy changes render past returns irrelevant Hence, while seeing no strong reason for a bullish view and also not being a committed bear, I opt for a Hold rating this time. However, these factors are supposed to play out in the longer term, while less distant issues can still eat into the ETFвЂ™s returns this year. The reasons which are shoring up my optimism include a rosy GDP growth outlook and exceedingly low inflation (by the current standards) together with the healthy structural trends. Nevertheless, I am positive about FM since Vietnamese stocks, principally those from the financial sector, account for the bulk of its net assets in the wake of the deep changes its basket underwent in recent years. In addition, I dislike its rather bleak 2.4% standardized yield, which comes as a surprise as anecdotal evidence suggests emerging and frontier markets are top destinations for risk-tolerant investors seeking bumper yields this is certainly has something to do with the high expenses of the fund, though with them stripped off, the TTM dividend yield is still not alluring enough for such a risky play. I appreciate FMвЂ™s inherent cheapness manifested in a 9.44x P/E as of the iShares data stemming from the size and country risk discounts, though I do not think this is sufficient enough to assign the vehicle a Buy rating at this juncture despite me touting the value factor this year, and the fact that FMвЂ™s price has slipped by ~21% YTD does not guarantee the frontier and select emerging markets equity basket has already bottomed. bellwether fund and URTH are moving nearly in tandem, and this ETF investors are not capturing even a measly alpha overseas, while also being exposed to the prolonged softness in New York should the hawks bolster bearish forces. Speaking of co-dependence, the YTD correlation coefficient of FM and the iShares Core S&P 500 ETF ( IVV) is only 0.59, while the iShares MSCI World ETF ( URTH), which is at times used by investors to meet their diversification goals, has its coefficient at 0.99, which is indicative that the U.S.

market might find this vehicle appealing, especially considering the bearish forces have been raging closer home, trimming generous valuations in the face of persistent inflation and the gnawing interest rates question. Investors seeking exposure to stocks uncorrelated with the U.S. But please bear in mind that burdensome fees erode returns. Fees of 79 bps are on the expensive side due to the inherent complexity of its riskier, less liquid markets-focused investment strategy.

Since its inception in September 2012, the fund has amassed net assets of around $371 million but with recent AUM trends being rather sluggish. вЂњAt вЂThe Way ForwardвЂ™ conference weвЂ™re bringing together some of the industryвЂ™s leading experts to provide advisors with the intellectual content and practical solutions that these times require.IShares MSCI Frontier and Select EM ETF ( NYSEARCA: FM) is a passively managed investment vehicle offering exposure to a vast and versatile equity basket of a few EM and frontier markets, with Vietnam (~27.2%), Nigeria (~8.9%), and Romania (~6%) being the top allocations. вЂњThe old ways of investing are not working for many end investors and advisers today are challenged to help their clients navigate a world that is more volatile, more uncertain and more complex,вЂќ says Martin Beaulieu, managing director, head of US iShares Wealth Advisory at BlackRock.

вЂњThe Way ForwardвЂќ will include 14 conference sessions, an exhibitor hall, networking lounge and resource centre вЂ“ all in an online format.

Ishare conference