Global X Plans Norway, Pakistan, UAE ETFs
Global X, the ETF issuer behind the first series of sector-specific China ETFs, has its eyes set on some interesting locales for a new round of ETFs.
Global X is planning a Norway-specific ETF. That is one country-specific ETF that makes sense as there is currently no Norway-spefic offering available to U.S. investors and given the country's oil reserves and relatively strong economy (Norway is not an EU member), this offering is practical.
In addition, Global X isssues the Global X FTSE Nordic 30 ETF (NYSE: GXF), so the firm knows its away around the region. Norway accounts for about 20% of GXF.
Global X is also planning a true frontier market ETF in the form of its Pakistan-specific offering. Pakistan is the epitome of a potential/peril investment scenario given the political issues in the country, but that's usually the case with frontier markets. The Claymore/BNY Mellon Frontier Markets ETF (NYSE: FRN) currently offers a small weighting to Pakistan.
If the recent credit crisis in Dubai didn't scare you off, then Global X's United Arab Emirates ETF might be worth taking a look at. Keep in mind playing the UAE is a play on Abu Dhabi's oil reserves just as much as it is a bet on Dubai. UAE is featured prominently in several ETFs, most notably the Market Vectors Gulf States ETF (NYSE: MES), which gives UAE a 27% weight.
