How to Play Africa: One ETF Banks on GDP – Bloomberg 07-22-13

Salient to Investors:

AFK is the most actively traded Africa ETF and the first ETF to move to weighting holdings based on GDP of the countries it tracks.

The vast majority of ETFs that focus on foreign countries and regions are weighted by market cap, which captures only the shares outstanding that are freely traded, excluding shares owned by insiders or the government and leaves smaller, more emerging countries and companies out of the equation. However, GDP weighting rewards past achievement, as GDP is reported quarterly and often revised, and including companies with larger insider or government ownership increases the risk of manipulation or corruption.

The IMF says Africa will grow 5.7 percent on average in 2013.

Read the full article at http://www.bloomberg.com/news/2013-07-22/how-to-play-africa-one-etf-banks-on-gdp.html

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