VanEck Africa Index ETF (ARCA:AFK), Quote.Headers.trade-ideas

VanEck Africa Index ETF

VanEck Vectors-Africa Index ETF

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Energy

Consumer Cyclical

Technology

Consumer Defensive

Healthcare

Industrials

Real Estate

Utilities

The fund normally invests at least 80% of its total assets in securities that comprise the funds benchmark index. The index includes local listings of companies that are incorporated in Africa and listings of companies incorporated outside of Africa but that have at least 50% of their revenues/related assets in Africa.

Banque Centrale Populaire

Ivanhoe Mines Ltd.

Anglo American Plc

Firstrand Ltd

Naspers Ltd Adr

Cmoc Group Ltd

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South Africa ETFs In Focus As Zuma Resigns

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SPDR S&P Emerging Middle East & Africa ETF

What The Algeria-Morocco UN Drama Means For Regional Stability And The Fight Against Terrorism

Emerging Markets

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Psychology

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AGRPY

APNHY

BDVSY

BRRAY

CLCGY

EXXAY

IHLDY

IMPUY

KIROY

MIXT

MMRTY

MRPLY

MTNOY

MURZY

SBGL

UEPS

ANGPY

MCFFY

NPKLY

NPSNY

NDBKY

SLLDY

SPPJY

SRGHY

SGBLY

TLKGY

TBLMY

VDMCY

WLWHY

The Challenges Of Conducting Business In Africa: &#39;We Are Facing Global Competition For Talent&#39;

During US-Africa Business Forum, Visa outlines pledge to invest&nbsp;$1 billion&nbsp;in Africa by 2027 to scale operations, deploy new innovative technologies and deepen collaboration with partners.

Visa Pledges To Invest $1B In Africa To Accelerate Digital Transformation

- Reuters Citing RIA
&nbsp;

CORN

Market Vectors Russia ETF Trust Shares of Beneficial Interest

SOYB

WEAT

Russia's Putin Told Erdogan That Russia Is Ready To Supply Significant Amount Of Grain, Fertilizers To Africa For Free

<a href="https://www.bloomberg.com/news/articles/2021-12-06/eu-to-consider-easing-omicron-travel-curbs-on-southern-africa" title="https://www.bloomberg.com/news/articles/2021-12-06/eu-to-consider-easing-omicron-travel-curbs-on-southern-africa">https://www.bloomberg.com/news/articles/2021-12-06/eu-to-consider-easing-omicron-travel-curbs-on-southern-africa</a>

'EU to Consider Easing Omicron Travel Curbs on Southern Africa' -Bloomberg Report

S&P Global Says Sovereign Rating Downgrades Or Outlook Cuts Likely In Coming Months, Expects More Rating Pressure On Latin American Countries, Expects More African Countries To Have To Restructure Debt

The South African economy suffered extensive political woes under Jacob Zuma&#39;s term. Moreover, the economy has performed very poorly since Zuma took office in 2009.
Zuma announced his resignation Wednesday night, following which market-friendly Deputy President Cyril Ramaphosa took office. This led to a rally in South African stocks and the rand, as the markets now expect more business-friendly reforms from Ramaphosa.
Economic Scenario
Per a Bloomberg <a href="https://www.bloomberg.com/news/articles/2018-02-15/zuma-s-exit-spurs-surge-in-south-african-stocks-as-banks-rally">article</a>, GDP growth in South Africa has averaged a mere 1.6% since Zuma was elected, very low for an emerging market.&nbsp; The South African economy grew 0.8% year over year in the third quarter of 2017, easing from an upwardly revised 1.3% expansion in the previous quarter.
The S&amp;P downgraded the country&#39;s credit rating to junk status in November 2017. It lowered South Africa&#39;s local currency credit rating to BB+ from BBB. However, following Zuma&#39;s exit, markets are placing bets on the South African economy, which is finally making a comeback. JSE Africa All Share Index increased 3.7% on Feb 15, 2018, caused by the euphoria following Zuma&#39;s resignation (read: <a href="https://www.zacks.com/stock/news/284321/south-africa-etfs-in-focus-on-rating-downgrade">South Africa ETFs in Focus on Rating Downgrade</a>).
The South African rand increased more than 12% against the dollar since Ramaphosa took the realm of the African National Congress. South African stocks have been increasing on the back of a stronger currency, which in turn translates into stronger consumer and business confidence and higher expected economic growth.
What Lies Ahead?
Investors are putting high hopes on Ramaphosa, a former chairman of Africa&#39;s biggest telecom operator MTN Group and expect him to turn around the economy plagued by corruption and mismanagement. Optimists expect Ramaphosa to engage in new ties with foreign miners and usher in new foreign investment by introducing pro-growth reforms.
&quot;He&#39;s going to have [to] come out sounding pretty strong. It&#39;s been a bruising battle to get Zuma out and he needs to show he is the undisputed leader and he has the momentum to get the work going,&quot; Per Hammarlund chief emerging markets strategist at SEB told Reuters.
Moreover, the economy faces increased risks from the budget presentation due next week. The new administration has to convince investors that it is capable of bringing about the required changes in the country&#39;s administration, to make investments in the corruption-plagued nation attractive. The damage caused by Zuma has been massive for the economy and it&#39;ll be interesting to witness how Ramaphosa plans to bring about a turnaround in the country. &nbsp;
Let us now discuss the most popular South Africa ETF in detail.
iShares MSCI South Africa ETF EZA
This fund offers exposure to the emerging market nation of South Africa by investing in companies based out of the nation.
EZA has AUM of $536.8 million and charges a fee of 62 basis points a year. Financials, Consumer Discretionary and Consumer Staples are the top three sectors with 31.0%, 26.9% and 9.2% allocation, respectively (as of Feb 14, 2018).&nbsp; Naspers Limited, Standard Bank Group and Firstrand Ltd are the top three holdings of the fund, with 19.5%, 6.0% and 5.4% exposure, respectively (as of Feb 14, 2018). EZA has returned 32.4% in a year and 6.9% year to date (as of Feb 15, 2018). It has a Zacks ETF Rank #4 (Sell) with a High risk outlook.
We will now compare the performance of EZA with a broader Africa-based ETF, AFK (see <a href="https://www.zacks.com/funds/etfs/etf-categories/Africa-Middle-East-Equity-ETFs-52">all Africa-Middle East Equity ETFs here</a>).
VanEck Vectors Africa Index ETF AFK
This fund has more than 50% allocation to Africa, covering economies such as South Africa, Egypt, Nigeria, Morocco, Kenya and Mauritius. It also invests in offshore listings of companies incorporated outside Africa but generate at least 50% of their revenues from the continent.
It has AUM of $79.9 million and charges 79 basis points in fees per year. The fund has 32.1% exposure to South Africa. Financials, Materials and Telecom are the top three sectors with 36.7%, 19.7% and 12.9% exposure, respectively (as of Jan 31, 2018). Naspers Limited, Commercial International Bank Egypt Sae and Attijariwafa Bank are the top three holdings of the fund, with 8.1%, 6.1% and 5.1% exposure, respectively (as of Feb 15, 2018). The fund has returned 21.2% in a year and 4.5% year to date (as of Feb 15, 2018). As such, AFK currently has a Zacks Rank #3 (Hold) with a Medium risk outlook.
Below is a chart comparing the one year performance of the two funds.
<img alt="" src="https://staticx-tuner.zacks.com/images/zadmin_tuner_image/sac(2).jpg" style="width: 620px; height: 312px;" />
Source: Yahoo Finance
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Diplomats at the United Nations Special Committee on Decolonization meeting in&nbsp;Saint Vincent and the Grenadines witnessed an unprecedented event last week.
<a href="https://www.moroccoworldnews.com/2017/05/216997/morocco-condemns-aggression-moroccan-diplomat-algerian-official/">According to a Moroccan official</a>, a heated discussion ended with the director general of the Algerian Ministry of Foreign Affairs hitting the deputy of the Moroccan ambassador to Saint Lucia in his face, reportedly knocking him out and sending him to the hospital.
A couple of sources claim to have seen the medical and police reports that confirm this version. However, Algerian government officials <a href="https://www.moroccoworldnews.com/2017/05/217124/nasser-bourita-assault-moroccan-diplomat-unacceptable-apologies-algeria/">argue</a> the fight was staged.
Moroccan Minister of Foreign Affairs Nasser Bourita told the French Press Agency (AFP) that Algeria should &quot;contribute to a solution and assume responsibility in the matter (&hellip;) assume the consequences of its actions.&quot;
Leaving all questioning about how things went down in this particular meeting aside, the relationship between Morocco and Algeria has been tense for years. This derives from a long-standing dispute over the sovereignty of Western Sahara and, most recently, from Morocco&#39;s <a href="https://www.benzinga.com/news/17/02/9048458/top-moroccan-businessman-talks-return-to-african-union-opportunities-for-economic">return to the African Union</a> and its allegations that Algeria was forcing Syrian refugees out of the latter and into the former.
So what does this mean for stability in the Northern African region and for the fight against terrorism on a global scale?
See Also: <a href="http://www.benzinga.com/news/17/02/9061802/morocco-and-the-u-s-top-african-businessman-talks-about-bilateral-relationship-un">Morocco And The U.S.: Top African Businessman Talks About Bilateral Relationship Under Trump</a>
<h3>
	The Rising Temperature</h3>
Dr. Magnus Norell, a Senior Fellow at the European Foundation for Democracy (EFD), adjunct scholar of The Washington Institute, and former senior analyst and project leader at the Swedish Defense Research Agency, said this kind of altercation was unprecedented in a U.N. diplomatic setting. However, &quot;[it says] something about the tension between these two countries.&quot;
&quot;On a wider scale, the attack reflects the frustration Algeria must be feeling due to the fact that it has lost some traction in the last year, especially when it comes to dealing with the issue of Western Sahara [and the Polisario Front they support, which is opposed to the Moroccan government&rsquo;s presence in the territory],&quot; said Dr. Norell. &quot;If you want to measure the temperature here, I think that this is a good sign of where things stand.&quot;
&quot;I think this also reflects the fact that Morocco has been gaining some traction within the African Union [in detriment of Algeria&rsquo;s power] and in the E.U. In fact, they recently presented ideas for a diplomatic solution to the Western Sahara issue. This has not made Algeria very happy.&quot;
<h3>
	Morocco&rsquo;s Proposal</h3>
Norell explained why Morocco&rsquo;s proposed solution to the Western Sahara conflict isn&#39;t making Algeria happy.
&ldquo;In essence, Morocco&rsquo;s plan would keep Algeria out of Western Sahara, giving the Sahrawi people self-determination,&quot; he said. &quot;This would not mean they would be fully independent, although they would be self-ruled, in a sense, while still protected by King Mohammed VI of Morocco. And, of course, that would be detrimental for the Algerian interest, because they would love to have a Polisario presence there, which means that they get an access to the Atlantic Ocean.&rdquo;
Interestingly, Morocco&rsquo;s proposal has been gaining traction among African states, especially since the country&rsquo;s return to the African Union &ndash; and also due to the positive influence the Kingdom has had over the region in recent decades, Norell said.
See Also: <a href="http://www.benzinga.com/news/17/03/9122546/the-challenges-of-conducting-business-in-africa-we-are-facing-global-competition-">The Challenges Of Conducting Business In Africa: &#39;We Are Facing Global Competition For Talent&#39;</a>
<h3>
	International Security</h3>
Norell, an expert on international security issues like terrorism and radical Islamic extremism, went into the implications of this conflict for the safety of the Western world.
&quot;In Western Sahara, Morocco has been filling a hole,&quot; he said. &quot;Formerly, a lot of bad people, extremists, were coming into Europe through Western Sahara, but that is not the case any longer. Now, these people are getting into Europe through Algeria and Libya. So, Morocco&#39;s role in the security of Europe and Northern Africa is seriously important.&quot;
&quot;Clearly Morocco is not afraid to take the lead in being the progressive leader in moderate Muslim countries and in combating fanaticism,&quot; Norell said, pointing out some examples that back this statement, like Morocco&rsquo;s recent capture and delivery [to the U.S.] of a couple of fugitive terrorists.
One expert Benzinga spoke with who asked not be named said &quot;Morocco is like the canary in the coal mine,&quot; highlighting the efforts of Driss El Yazami, Chairman of Morocco&#39;s National Council of Human Rights, to improve the situation in Western Sahara.
<h3>
	A Bet On Stability</h3>
Investors often ask how they can invest in African companies. While most of them don&#39;t trade in the NYSE or Nasdaq because, as prominent businessman <a href="https://www.benzinga.com/news/17/02/9095772/why-most-african-companies-are-not-listed-on-the-nyse-or-nasdaq-its-all-about-val">Saad Bendidi explained</a>, the market would likely grant discounted valuations to these companies, a few are either listed in these major exchanges or trade over-the-counter in the U.S.
Africa-focused ETFs include:
<ul>
<li>
		iShares MSCI South Africa Index (ETF) (NYSE: <a class="ticker" href="/stock/eza#NYSE">EZA</a>)</li>
<li>
		Market Vectors Africa (ETF) (NYSE: <a class="ticker" href="/stock/afk#NYSE">AFK</a>)</li>
<li>
		Market Vectors Egypt Index ETF (NYSE: <a class="ticker" href="/stock/egpt#NYSE">EGPT</a>)</li>
<li>
		SPDR S&amp;P Emerging Middle Est &amp; Afrca ETF (NYSE: <a class="ticker" href="/stock/gaf#NYSE">GAF</a>)</li>
</ul>

Africa is a very diverse continent, and so are its countries&rsquo; economies. However, they have one thing in common: <a href="http://www.benzinga.com/news/17/02/9062749/expert-talks-business-and-natural-resources-in-morocco-africa-growth-is-still-ahe">growth is still ahead of them</a>.
Another interesting thing to notice is that companies there serve millions of customers, largely due to the fact that penetration of U.S.-based companies is not as extensive as in other areas of the world. However, just a very small portion of these corporations trade on major stock exchanges like the NYSE or the Nasdaq.
Besides a few South African, Nigerian and Zambian stocks, there isn&rsquo;t much African presence in Wall Street. There&rsquo;s Sasol Limited (ADR) (NYSE: <a class="ticker" href="/stock/ssl#NYSE">SSL</a>), AngloGold Ashanti Limited (ADR) (NYSE: <a class="ticker" href="/stock/au#NYSE">AU</a>), Gold Fields Limited (ADR) (NYSE: <a class="ticker" href="/stock/gfi#NYSE">GFI</a>), Sibanye Gold Ltd (ADR) (NYSE: <a class="ticker" href="/stock/sbgl#NYSE">SBGL</a>), Net 1 UEPS Technologies Inc (NASDAQ: <a class="ticker" href="/stock/ueps#NASDAQ">UEPS</a>) and about 35 more companies. So, quite few considering that that there are 54 countries and more than 1.2 billion people in Africa.
Intrigued by this absence of African companies on Wall Street, Benzinga reached out to one of Morocco&rsquo;s top businessmen, <a href="http://benzinga.com/topic/saad-bendidi">Sa&acirc;d Bendidi</a>. Benidi is the general manager at the Saham Group, one of the largest companies in Africa, present in 57 percent of the countries there, with more than 14,000 employees and over $1.2 billion in annual revenue.
Related Link: <a href="https://www.benzinga.com/news/17/02/9062749/expert-talks-business-and-natural-resources-in-morocco-africa-growth-is-still-ahe">Expert Talks Business And Natural Resources In Morocco, Africa: 'Growth Is Still Ahead Of Us'</a>
<h3>An Informed Opinion</h3>
Benzinga: We were looking into Forbes&rsquo; Top 100 Companies in The Arab World 2016 list and noticed that a few Moroccan companies (BMCE Bank, Banque Centrale Populaire and Attijariwafa Bank) were included. However, none of these mid-caps are listed on major stock exchanges. Why is that?
Bendidi: Let me take an example I know, the Saham Group. Saham is not a traded company; we have sustained our development by our own resources or with some partners, so we don&rsquo;t need any money from the market for the time being. Maybe one day we will need it to sustain our growth, but for the time being [...] we have access to all the money we need in a very smooth way, so we didn&rsquo;t even list our companies in the domestic markets. This is the case for Saham, but it might also be the case for others.
The second thing is that, if we wanted to go to a major market, these markets would need to assess the risk the same way that we assess it. I can tell you, for example, if we invest in Nigeria, some people would argue it&rsquo;s an awful move &mdash; you have a lot of constraints, very low oil prices, devaluation of the currency, and so on. So, the Saham Group would trade at a discount.
However, our risk assessment is different. We are focused on spreading across Africa; diversification is a strength. In addition, we have a lot of money and we are dealing in a lot of money, so we try to mitigate the risk on that.
So, if you look at this with the eyes of Wall Street, [our investments would look] quite small and very complicated. So, people would apply a discount to our stock. Nonetheless, investors that have the right analysis, and that are close to the continent and to the businesses, are evaluating our business differently. So, we do prefer to work (and we have worked) with some large private equity funds that are knowledgeable about the region or the businesses, so that we can reach harmony on the evaluations, on what is the value of the business, the value creation, and the risk assessment.
Basically, this is the difference of perspective that we may have with the markets where people are looking at things from a top-down perspective rather than making a bottom-up analysis that is more complicated.
<h3>More African Companies</h3>
Other publicly traded African companies are:
<ul>
<li>Anglo American Platinum Ltd(ADR) (OTC: ANGPY)</li>
<li>ASPEN PHARMACARE UNSP ADR EACH REP 1 ORD (OTC: <a class="ticker" href="/stock/apnhy#OTC">APNHY</a>)</li>
<li>Barclays Africa Group Ltd (ADR) (OTC: <a class="ticker" href="/stock/agrpy#OTC">AGRPY</a>)</li>
<li>Barloworld Limited (ADR) (OTC: <a class="ticker" href="/stock/brray#OTC">BRRAY</a>)</li>
<li>Bidvest Group Ltd (ADR) (OTC: <a class="ticker" href="/stock/bdvsy#OTC">BDVSY</a>)</li>
<li>Clicks Group Ltd (OTC: <a class="ticker" href="/stock/clcgy#OTC">CLCGY</a>)</li>
<li>DRDGOLD Ltd. (ADR) (NYSE: <a class="ticker" href="/stock/drd#NYSE">DRD</a>)</li>
<li>Exxaro Resources Limited (ADR) (OTC: <a class="ticker" href="/stock/exxay#OTC">EXXAY</a>)</li>
<li>Harmony Gold Mining Co. (ADR) (NYSE: <a class="ticker" href="/stock/hmy#NYSE">HMY</a>)</li>
<li>Impala Platinum Holdings Limited (ADR) (OTC: <a class="ticker" href="/stock/impuy#OTC">IMPUY</a>)</li>
<li>Imperial Holdings Limited (ADR) (OTC: <a class="ticker" href="/stock/ihldy#OTC">IHLDY</a>)</li>
<li>Kumba Iron Ore Ltd (ADR) (OTC: <a class="ticker" href="/stock/kiroy#OTC">KIROY</a>)</li>
<li>MASSMART HOLDINGS UNSP ADS EA REPR 2 ORD (OTC: <a class="ticker" href="/stock/mmrty#OTC">MMRTY</a>)</li>
<li>MEDICLINIC INTL UNSP ADR EA REPR 5 ORD SHS (OTC: <a class="ticker" href="/stock/mcffy#OTC">MCFFY</a>)</li>
<li>MiX Telematics Ltd &ndash; ADR (NYSE: <a class="ticker" href="/stock/mixt#NYSE">MIXT</a>)</li>
<li>Mr Price Group Ltd. (OTC: <a class="ticker" href="/stock/mrply#OTC">MRPLY</a>)</li>
<li>MTN Group Ltd (ADR) (OTC: <a class="ticker" href="/stock/mtnoy#OTC">MTNOY</a>)</li>
<li>MURRAY &amp; ROBERTS SPON ADR EA REPR 1 ORD (OTC: <a class="ticker" href="/stock/murzy#OTC">MURZY</a>)</li>
<li>Nampak Ltd (ADR) (OTC: <a class="ticker" href="/stock/npkly#OTC">NPKLY</a>)</li>
<li>Naspers Limited (ADR) (OTC: <a class="ticker" href="/stock/npsny#OTC">NPSNY</a>)</li>
<li>Nedbank Group Ltd. (ADR) (OTC: <a class="ticker" href="/stock/ndbky#OTC">NDBKY</a>)</li>
<li>SANLAM ADR EACH REPR 2 SHS (OTC: <a class="ticker" href="/stock/slldy#OTC">SLLDY</a>)</li>
<li>Sappi Limited (ADR) (OTC: <a class="ticker" href="/stock/sppjy#OTC">SPPJY</a>)</li>
<li>SHOPRITE HLDGS LTD ADR EACH REPR 1 ORD (OTC: <a class="ticker" href="/stock/srghy#OTC">SRGHY</a>)</li>
<li>STANDARD BK GR LTD SPON ADR EA REPR 1 ORD (OTC: <a class="ticker" href="/stock/sgbly#OTC">SGBLY</a>)</li>
<li>Telkom SA SOC Ltd (ADR) (OTC: <a class="ticker" href="/stock/tlkgy#OTC">TLKGY</a>)</li>
<li>Tiger Brands Ltd (ADR) (OTC: <a class="ticker" href="/stock/tblmy#OTC">TBLMY</a>)</li>
<li>VODACOM GROUP LIMI SPON ADR EA REPR 1 ORD (OTC: <a class="ticker" href="/stock/vdmcy#OTC">VDMCY</a>)</li>
<li>WOOLWORTHS HLDGS SPONS GDR EACH REP 1 ORD (OTC: <a class="ticker" href="/stock/wlwhy#OTC">WLWHY</a>)</li>
</ul>
Africa-focused ETFs include:
<ul>
<li>iShares MSCI South Africa Index (ETF) (NYSE: <a class="ticker" href="/stock/eza#NYSE">EZA</a>)</li>
<li>Market Vectors Africa (ETF) (NYSE: <a class="ticker" href="/stock/afk#NYSE">AFK</a>)</li>
<li>Market Vectors Egypt Index ETF (NYSE: <a class="ticker" href="/stock/egpt#NYSE">EGPT</a>)</li>
<li>Market Vectors Egypt Index ETF (NYSE: <a class="ticker" href="/stock/egpt#NYSE">EGPT</a>)</li>
<li>SPDR S&amp;P Emerging Middle Est &amp; Afrca ETF (NYSE: <a class="ticker" href="/stock/gaf#NYSE">GAF</a>)</li>
</ul>

Trading Ideas

Why Most African Companies Are Not Listed On The NYSE Or Nasdaq: It's All About Valuations

Benzinga recently had a conversation with one of Morocco&rsquo;s top businessmen, <a href="http://benzinga.com/topic/saad-bendidi">Sa&acirc;d Bendidi</a>. The entrepreneur walked us through the country&rsquo;s return to the African Union after more than three decades of absence, some of the <a href="https://www.benzinga.com/news/17/02/9048458/top-moroccan-businessman-talks-return-to-african-union-opportunities-for-economic">opportunities for economic expansion</a> ahead and even about the <a href="https://www.benzinga.com/news/17/02/9061802/morocco-and-the-us-top-african-businessman-talks-about-bilateral-relationship-und">relationship between the United States and Morocco</a>.
Below is a look into some of Bendidi&rsquo;s comments in relation to business, finance and corporate culture in the African country.
Given that Bendidi is on the board of directors of several leading companies in Morocco, Benzinga asked him about growth prospects and interesting companies.
<h3>Growth Drivers</h3>
&ldquo;In Morocco, in particular, and in the [African] continent, in general, the growth is still ahead of us,&rdquo; he commenced, providing a few reasons to believe this.
1. Demographics
&ldquo;The continent is expected to more than double its population. By 2040, the third largest populated country will be in Africa; it will be Nigeria, [with] 450 million people.&rdquo;
2. Middle Classes
&ldquo;The second thing is that the improvement of the standard of living is creating more and more middle classes. So, all the sectors that are related to housing, construction, financial inclusion, protection, and so on, have a great expectancy of growth, not only in the next five years, but we can project this growth to be sustained over the next 25 years.&rdquo;
&ldquo;Nevertheless, we cannot say, 'You just have to invest and you&rsquo;ll make money.' There are tremendous challenges to overcome in Africa and our region. We are still behind in the level of infrastructure, on the level of the affordability of certain essential needs.&rdquo;
3. Natural Resources
&ldquo;Of course, the natural resources will remain [another] field of growth. For example, mining: you have ups and downs in the sector, but Africa is still very rich when it comes to natural resources. You have many international players coming for mining, for oil, for gas application, for large infrastructure.&rdquo;
4. Consumer Goods
&ldquo;Finally, all the fast-growing consumer goods have great prospects. Of course, you cannot only import and sell; you also need to have some manufacturing on-site in order to adapt the product and to make it quite competitive to penetrate in these markets.&rdquo;
Related Link: <a href="https://www.benzinga.com/news/17/02/9048458/top-moroccan-businessman-talks-return-to-african-union-opportunities-for-economic">Top Moroccan Businessman Talks Return To African Union, Opportunities For Economic Expansion</a>
<h3>The Winners</h3>
&ldquo;So, the winners &mdash; I would say &mdash; are mining, oil, consumer products, the financial sector, and energy, especially renewable energies. That is realistic, especially for housing. These are, for me, the main areas where the expansion is,&rdquo; Bendidi concluded.
<h3>The Energy Sector</h3>
Since the businessman mentioned the energy sector, we inquired about its potential.
&ldquo;In the medium-term, Morocco is not yet, I would say, an oil producing country or a gas producing country [...] Morocco tried to balance that by having a very aggressive quality in renewable energy, both in developing eolic energy, and also solar energy, where you have one of the largest bases in the world in this field.&rdquo;
&ldquo;By the year 2020, we will have more than 45 percent of the energy consumption that will be produced from renewable energy,&rdquo; Bendidi ended.

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SPDR Dow Jones Industrial Average ETF Trust

GULF

iShares Trust Barclays 20+ Year Treasury Bond Fund

Expert Talks Business And Natural Resources In Morocco, Africa: 'Growth Is Still Ahead Of Us'

Benzinga recently had the chance to chat with one of Morocco&rsquo;s top businessmen, <a href="http://benzinga.com/topic/saad-bendidi">Sa&acirc;d Bendidi</a>, who walked us through the country&rsquo;s return to the African Union after more than three decades of absence, discussing some of the opportunities ahead <a href="https://www.benzinga.com/news/17/02/9048458/top-moroccan-businessman-talks-return-to-african-union-opportunities-for-economic">for international economic expansion</a>.
As the conversation progressed, Morocco&rsquo;s relationship with the United States under a Donald Trump administration arose.
<h3>Trump And King Mohammed VI</h3>
While Bendidi explained he is not deeply involved in politics, his experience allowed him to introduce the topic.
&ldquo;If we look at the last 60 years, the relationship between Morocco and the U.S. has consistently been on an outstanding level. [We&rsquo;ve had] very good cooperation, as the U.S. considered Morocco a reliable and stable country, not only for itself, but as a country of influence in the region &mdash; not only on [the] economic side,&rdquo; he said.
Related Link: <a href="http://www.benzinga.com/news/17/02/9048458/top-moroccan-businessman-talks-return-to-african-union-opportunities-for-economic">Top Moroccan Businessman Talks Return To African Union, Opportunities For Economic Expansion</a>
&ldquo;Maybe the trade relations are not so big compared to the ones that Morocco has with the European Union. But still, the cooperation, no matter [whether] the administration is Republican or Democrat, has always been great,&rdquo; he added.
Going forward, he voiced, this cooperative relationship should continue for several reasons. Among them, the businessman highlighted the United States&rsquo; &ldquo;concern for stability, [and its interest in having] strong allies to fight terrorism,&rdquo; and the &ldquo;access to large markets.&rdquo;
These factors should &ldquo;conduct the new administration to have a positive outlook, even more positive than during the Obama presidency, when considering Morocco,&rdquo; he concluded. &ldquo;So, I feel like that the relationship could even strengthen in the near future because of the tough priorities that have been set by the new administration, and in which Morocco could play a very positive role.&rdquo;
Image Credit: King Mohammed VI with former U.S. President George Bush in 2002, by White House photo by Eric Draper - whitehouse.gov, Public Domain, <a href="https://commons.wikimedia.org/w/index.php?curid=107415" title="https://commons.wikimedia.org/w/index.php?curid=107415">https://commons.wikimedia.org/w/index.php?curid=107415</a>

Morocco And The U.S.: Top African Businessman Talks About Bilateral Relationship Under Trump

&ldquo;[Morocco&rsquo;s] membership in the African Union [...] [is] the conclusion of a big process that has been led for many years.&rdquo; &ndash; Sa&acirc;d Bendidi.
After more than three decades of absence, Morocco returned to the African Union (AU) in 2017. But, the return did not come without controversy. While most countries in the continental body supported Morocco&rsquo;s homecoming, some argued that readmission should only occur after the government recognized the sovereignty of Western Sahara &mdash; currently a disputed territory.
Looking for an insider perspective on the issue, Benzinga reached out to one of Morocco&rsquo;s top businessmen, <a href="http://www.bloomberg.com/research/stocks/private/person.asp?personId=49856180&amp;privcapId=252392116">Sa&acirc;d Bendidi</a>, who currently serves on the boards of some of the largest companies in the country.
<h3>Coming Home</h3>
&ldquo;I am not an official. I can just report to you what I heard as a Moroccan citizen and as an African citizen,&rdquo; he began.
&ldquo;Morocco left the predecessor of the African Union, that was the Organization of African Unity, 30 years ago, because this organization welcomed the membership of the so-called Arab Republic of Sahara. Morocco was upset that the organization was not in a position to welcome a non-recognized country as a full member of the organization,&rdquo; Bendidi explained.
However, the situation has evolved since, leading Morocco to re-join &ldquo;the global African community represented in the African Union,&rdquo; he continued, pointing out that, while not a member, the country &mdash; and King Mohammed VI &mdash; had continued to strengthen bilateral relationships with many Sub-Saharan African countries.
<h3>The Opposition</h3>
&ldquo;The votes were some 39 countries voting for positively on the welcoming of membership of Morocco and only 10 countries voting against it,&rdquo; Bendidi continued. &ldquo;[Among those that voted against the return were] the so-called Sahara Republic, Algeria &mdash; its main sponsor &mdash; and South Africa and the countries where the South Africa Republic has some political influence. I would say Botswana, Malawi, Angola. All sorts of countries that are under a big influence from South Africa.&rdquo;
<h3>Economic Expansion</h3>
Several media outlets reported that, following its reincorporation to the AU, Morocco had signed several trade deals with numerous countries in Africa.
&ldquo;Basically, the membership in the African Union would not induce new trade or investment agreements with other countries. It is, let&rsquo;s say, the conclusion of a big process that has been led for many years,&rdquo; Bendidi voiced.
Related Link: <a href="https://www.benzinga.com/news/17/01/8940355/marijuana-legalization-around-the-world-whos-next">Marijuana Legislation Around The World; Who's Next?</a>
In fact, over the past decade or so, Morocco not only signed bilateral agreements and regional agreements in West Africa, where there is an economic union and free trade zone, but also made &ldquo;substantial and significant foreign direct investments there,&rdquo; he added.
<h3>Financials Were First</h3>
Morocco&rsquo;s expansion into West Africa began 15 years ago with the establishment of Moroccan banks in other countries in the region. The first ones to expand overseas were the three largest in the country: Attijariwafa Bank, BMCE Bank, and Banque Centrale Populaire.
They started in West and Central Africa. However, over the last three or four years, they also moved into countries in the East &ldquo;and the countries in the Indian Ocean, like Mauritius, Madagascar, Tanzania and Kenya,&rdquo; Bendidi expounded.
&ldquo;So, the first move has been from the financial sector and mainly banks. Then you had some insurance like the Saham Group [...] We are present today in 31 countries among the 52 countries that exist in Africa,&rdquo; he supplemented.
<h3>Construction &amp; Energy Followed Suit</h3>
The businessman then moved on to the building and construction sector, another one that saw plenty of international expansion over the last few years. Interestingly, the case was similar for the energy and mining sectors, which witnessed plenty of cooperation in the region. This has been especially true for renewable energy projects, like <a href="http://inhabitat.com/eolic-a-foldable-portable-wind-turbine/">Eolic</a> and solar plants.
In addition, &ldquo;there are utility projects, mainly in the Ivory Coast and Cameroon, where there is significant experience with Moroccan companies,&rdquo; he concluded.
<h3>Favorable Conditions</h3>
All of these initiatives made Morocco&rsquo;s international expansion easier, Bendidi went on. &ldquo;Because the largest companies went there and the banks were there, you have some medium-sized companies that started to go there because they have some relationship with bigger companies and, for them, the risk assessment for doing business is [easiest] there.&rdquo;
Moreover, he mentioned, Sub-Saharan Africa offers some other important characteristics that incentivize business. There are a high number of French-speaking countries in West Africa, a single currency in Central Africa, free trade agreements and a unified commercial law.
&ldquo;So, when you have to set up a company or you have some conflict resolution on the commercial side, you have a unified law,&rdquo; the expert pointed out. &ldquo;So, having a single currency, a free trade zone, plus a single commercial, law helps the business community to start businesses and to expand, not only in one country but very quickly over a region.&rdquo;
<h3>The Casablanca Hub</h3>
Last, but not least, Bendidi highlighted, &ldquo;Morocco took the opportunity to set up, I would say, a gateway to all these countries.&rdquo;
&ldquo;I can mention at least two initiatives,&rdquo; he supplemented. &ldquo;The first one is that the airline company [Royal Air Maroc] built a hub in Casablanca; you can reach most of the countries by daily flights from Casablanca [...] This really helped many multinational and international companies considering doing business in Africa.&rdquo;
&ldquo;The second thing is that Morocco created a financial center where you can apply and have a license to set up a company. Whenever you are setting some business in order to expand in Africa, then you have some incentives and a tax holiday for quite a long period,&rdquo; he ended. &ldquo;So, if you&rsquo;d like to start some business, Casablanca is becoming more and more a good hub for starting a business because of these two factors.&rdquo;
Check back tomorrow for Part 2 of this interview. Where Bendidi goes into the impact of a Trump administration on U.S.&ndash;Morocco relations, the Saham Group and more.
Image Credit: "O presidente Luís Inácio Lula da Silva e o rei do Marrocos Mohammed VI em Brasília." By U. Dettmar/ABr - Agência Brasil [1], CC BY 3.0 br, <a href="https://commons.wikimedia.org/w/index.php?curid=2978878">via Wikimedia Commons</a>

Top Moroccan Businessman Talks Return To African Union, Opportunities For Economic Expansion

August 24, 2015 will be remembered as another rendition of Black Monday as equity bourses the world over plunged. Things were so bad that various headlines implied the Dow&#39;s nearly 600-point tumble was not so bad when considering the blue-chip index opened down by 1,000 points.

	Well, there were a few winners and Monday&#39;s big winner among global equity markets was, drum roll please... the Nairobi Securities Exchange, the major equity index in Kenya. Stocks in Africa&#39;s ninth-largest economy climbed nearly 2.5 percent.
<h3>
	Running Strong</h3>

	Although there is not a dedicated Kenya exchange traded fund listed in the US, daring investors can access Kenyan stocks via several U.S.-listed ETFs. That is if you are a believer that Monday&#39;s temerity is a sign of things to come for Kenyan stocks. Remember, Nairobi Securities Exchange would need to gain more than 33 percent from Monday&#39;s close to hit its 52-week high.

	Related Link: <a href="http://www.benzinga.com/news/15/08/5788621/the-biggest-losers-from-mondays-market-meltdown">The Biggest Losers From Monday&#39;s Market Meltdown</a>
<h3>
	FRN</h3>

	The Guggenheim Frontier Markets ETF (NYSE: <a class="ticker" href="/stock/frn#NYSE">FRN</a>) has an almost 9.8 percent weight to Kenya, placing the African nation just behind, interestingly, the US in FRN&#39;s lineup. That makes Kenya FRN&#39;s sixth-largest country weight.

	There was a time that FRN did not have much of a frontier feel to it as it was home to more emerging markets than markets with the frontier classification. That has changed as FRN is most a frontier fund if one can look past a more than 13 percent combined weight to the US and UK Kenya cannot, nor has it carried the day for FRN.

	The ETF allocates almost 30 percent of its combined weight to Kuwait and Nigeria, two members of the Organization of Petroleum Exporting Countries. That is not a positive trait when oil prices are tumbling. FRN&#39;s largest individual holding is an 8.4 percent allocation to the Market Vectors Vietnam ETF (NYSE: <a class="ticker" href="/stock/vnm#NYSE">VNM</a>). Add to that, FRN has an almost 5 percent weight to Kazakhstan, meaning the ETF has significant exposure to <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/08/5779160/ding-dong-currency-devaluation-plagues-vietnam-etf">recent currency devaluers</a>.
<h3>
	FM</h3>

	Home to $502.6 million in assets under management, the iShares MSCI Frontier 100 ETF (NYSE: <a class="ticker" href="/stock/fm#NYSE">FM</a>) is the largest frontier markets ETF. FM is also home to a 6 percent weight to Kenya, making the country the ETF&#39;s fifth-largest country weight. Like FRN, FM has OPEC and currency devaluation problems. Kuwait and Nigeria, the latter of which has also devalued its currency, combine for almost 39 percent of FM&#39;s weight while Vietnam and Kazakhstan combine <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/08/5781305/kazakhstan-currency-devaluation-has-unexpected-etf-impact">for another six percent</a>.
<h3>
	AFK</h3>

	The Market Vectors Africa Index ETF (NYSE: <a class="ticker" href="/stock/afk#NYSE">AFK</a>) has a 3.3 percent weight to Kenya, which probably is not a coincidence because AFK is weighted by GDP and that puts Kenya in the ninth spot in AFK&#39;s lineup Then again, four of the countries ahead of Kenya on AFK&#39;s roster are the UK, France, the Netherlands and Canada.

	AFK&#39;s methodology is not perfect. Either that or the ETF is not recognizing Nigeria&#39;s new way of calculating its GDP, which made it the largest African economy. South Africa, previously Africa&#39;s largest economy; and Egypt. North Africa&#39;s biggest economy; are AFK&#39;s top two country allocations with a combined weight of almost 44 percent.

	Image credit: <a href="https://www.flickr.com/photos/aiace/3221863269/">Franco Pecchio</a>, Flickr

Long Ideas

Short Ideas

How To Access Black Monday's Best-Performing Market (If You Dare)

The Ebola outbreak has been ravaging West Africa and the second confirmed case in the United States has now gotten the world&rsquo;s attention.

	One person has died from the disease on U.S. soil; however, it has <a href="http://www.forbes.com/sites/jvchamary/2014/10/13/ebola-trends/">claimed 4,000 lives</a> around the world, specifically in Africa, according to the World Health Organization. That is out of the 8,400 probable or suspected Ebola cases reported.

	The affect the disease is having on the economies of West African nations plagued with Ebola has been evident. If the disease is to spread to larger nations, such as Nigeria, it could have a devastating ripple effect. Here is a look at ETFs with the closest exposure to the region and how they have been affected by the Ebola outbreak.

	The Market Vectors Africa ETF (NYSE: <a class="ticker" href="/stock/afk#NYSE">AFK</a>) consists of 114 of the largest companies in Africa across eight industries. The largest weight being in financials at 42 percent and energy with 18 percent. The largest individual holdings include Commercial International Bank Egypt Sae at 8.8 percent, Guaranty Trust Bank Plc with a 5.3 percent holding and Zenith Bank Plc making up 4.3 percent of the portfolio.

	<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/top-stories/14/10/4920817/why-you-should-be-concerned-about-a-break-in-the-200-day">Why You Should Be Concerned About A Break In The 200-Day</a></bzrelatedlink>

	Egypt and South Africa make up 40 percent of the ETF, and the disease has not directly affected either country. However, Nigeria is geographically close to where the outbreak is most rampant, and the country accounts for 17 percent of the allocation. Sierra Leone, which has been hit hard, makes up a mere 0.3 percent.

	AFK is down 3 percent over the last 12 months and down 6 percent over the last six months. Since the Ebola epidemic began in the beginning of September, the fund has fallen about 12 percent.

	The Global X MSCI Nigeria ETF (NYSE: <a class="ticker" href="/stock/nge#NYSE">NGE</a>) follows 25 of the largest publicly traded companies in Nigeria. NGE is a very consolidated ETF with the top four holdings making up 46 percent of the entire fund. Those top holdings are Nigerian Breweries PLC at 17 percent, Guaranty Trust Bank PLC at 11 percent, Zenith Bank Limited at 9 percent and Nestle Nigeria PLC making up 8 percent of the portfolio.

	The fund is down 5 percent over the last year and 4 percent over the last six months. Nigeria has been affected by Ebola, but not nearly to the degree that other West African countries have been.

	The iShares MSCI South Africa ETF (NYSE: <a class="ticker" href="/stock/eza#NYSE">EZA</a>) tracks 52 companies in South Africa across eight industries. The heaviest weighted industries being financials with 28 percent and consumer discretionary at 24 percent. The top weighted individual holdings include Naspers Limited N LTD at 15 percent, MTN Group LTD making up 12 percent of the ETF and Sasol LTD at 10 percent. EZA is down 2 percent over the last 12 months, as well as the last six months.

	Since the outbreak began in the beginning of September, the fund has slid 9 percent despite South Africa being one of the farthest points on the continent from the highly-infected areas.

Specialty ETFs

A Look At 3 Ebola And African-Related ETFs

When searching for growth potential around the globe an investor will more often than not be drawn to the continent of Africa.

	The estimates end to vary, however in general most experts believe GDP for the continent will exceed five percent in 2014, well above the growth expectations of the U.S. and other developed regions.

	The large land mass is made up of varying types of countries that rely on a plethora of industries and that have difference political situations. The majority of the countries do not have governments that are stable enough to provide investment opportunities to Western investors. 

This makes investing in the continent as a whole risky in many investors’ opinions. But, with above average risk comes above average return potential.

	Africa ETFs

	Market Vectors Africa ETF (NYSE: <a class="ticker" href="/stock/afk#NYSE">AFK</a>)

	The $114 million ETF has been around since the middle of 2008 and in that time has struggled to outperform many of its peers. The ETF is heavily concentrated on the financial stocks of the region (40 percent), followed by 35 percent in the energy and material stocks.

	See also: <a href="http://www.benzinga.com/news/14/03/4383397/chinas-weak-data-outweighs-concern-over-ukraine-brent-slides">China's Weak Data Outweighs Concern Over Ukraine</a>

	The largest exposure for the ETF is Egypt (23 percent), South Africa (19 percent), and Nigeria (15 percent). While Egypt has been strong over the last 12 months, both South Africa and Nigeria have lagged. This has held AFK back and the ETF is only up three percent in the last year.

	SPDR S&amp;P Emerging Middle East &amp; Africa ETF (NYSE: <a class="ticker" href="/stock/gaf#NYSE">GAF</a>)

	The ETF has been around for 7 years and currently has $62 million in assets. Over the last year the ETF has lagged AFK as it has lost three percent. The main reason for the underperformance has been the large exposure to South Africa (93 percent).

	The remaining portfolio of the portfolio is invested in Egypt and Morocco. The unusually large exposure to one country makes GAF in essence a South African ETF and investors should not be duped into believing the ETF offers exposure to the entire region.

	Country ETFs

	iShares MSCI South Africa Index ETF (NYSE: <a class="ticker" href="/stock/eza#NYSE">EZA</a>)

	The ETF has over $478 million in assets, but has a similar 12-month return as GAF, losing four percent in the last year. The ETF is composed of 51 stocks with a quarter of the portfolio in both the financials and consumer discretionary sectors.

	The economy of South Africa can be very different from its neighbors to the north. South Africa is an emerging market, whereas most other African nations are considered frontier markets and are in the early stages of development. The country’s reliance on commodities and materials has hurt its performance over the last few years.

	Global X Nigeria Index ETF (NYSE: <a class="ticker" href="/stock/nge#NYSE">NGE</a>)

	Losing 10 percent over the last year, NGE is the worst performer of the highlighted African ETFs. With that being said, it is the most exciting opportunity and has the most upside potential. The small ETF, only $12 million in assets, is nearly one year old.

	Most investors think energy when Nigeria is mentioned, however the ETF is composed of 44 percent financial stocks and 20 percent consumer staples to go with 27 percent in the energy sector. The ETF recently tested its all-time low at $13.60 and was able to bounce. Even though the ETF has lagged, the recent action is bullish and could be the first signal in a buying opportunity.

	When it comes to investing in emerging and frontier markets there is one trait that investors must possess – patience. Investors cannot expect to make big money overnight as the path to growth can be volatile and take time.

Breaking Down The African ETFs (AFK, GAF, EZA, NGE)

The U.S. celebrated its independence on Thursday.

	Hopefully, Egypt is on a similar path. The North African nation broke free of Mohammed Morsi's "leadership" earlier this week in an effort to sever ties with the controversial Muslim Brotherhood. Morsi is under house arrest and Adly Mansour has been sworn in as interim president following what some international observers are deeming a military coup.

	The overthrow of Morsi represents Egypt's second regime change since the Arab Spring over years ago and to say North Africa's largest economy is fractured and home to a still tenuous political situation is an understatement. However, financial markets have embraced that idea that Morsi has been removed from power because the Market Vectors Egypt ETF (NYSE: <a class="ticker" href="/stock/egpt#NYSE">EGPT</a>) has been surging this week.

	EGPT, which had previously reached lows that worse than those seen during the Arab Spring, was reverse split <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/06/3699927/reverse-splits-coming-for-7-market-vectors-etfs">on a 1-for-4 basis on Monday</a>, so the ETF got the benefit of some artificial price inflation. What has happened since then, however, has been legitimate price appreciation as traders have bet the ETF would benefit from regime change.

	News of Morsi's potential then realized ouster has been a boon for EGPT, sending the ETF higher <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/07/3728405/egypt-etf-soars-as-morsis-control-appears-tenuous">on impressive volume</a>. The lone Egypt-specific ETF shot up on Tuesday on roughly six times the average turnover. EGPT even managed to trade quadruple its daily average in Wednesday's holiday shortened session. With more than three hours left in Friday's session, EGPT is up four percent on volume that is already more than six times the usual.

	EGPT's post-reverse split price was just over $38. The fund is flirting with $44 Friday, but that does not mean this is suddenly a docile fund that all investors should embrace. Investors looking to participate in upside for Egyptian stocks without making in an all-in bet on the country can consider a pair of multi-country ETFs.

	Market Vectors Africa Index ETF (NYSE: <a class="ticker" href="/stock/afk#NYSE">AFK</a>) 
	The Market Vectors Africa Index ETF is another "not for the faint of heart" play and that is not just because of the fund's 22.6 percent weight to Egypt. South Africa, also ravaged by stunningly high unemployment, accounts for 24.3 percent of AFK's weight. AFK's South Africa exposure means investors that buy this fund are, to some extent, leveraged to gold, platinum and palladium prices, tough corners of the market to be in at the moment.

	The good news is AFK does offer a 20.2 percent allocation to Nigeria, another frontier market awash in <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/05/3617438/nigeria-etf-gets-good-news-on-glum-day-for-global-markets">investment potential and peril</a>. AFK has been getting a boost from Egypt as the ETF is up 3.4 percent in the past week.

	Investors should know what they are getting into at the sector level as financials, energy and materials names combine for nearly three-quarters of AFK's weight.

	PowerShares MENA Frontier Countries Portfolio (NASDAQ: <a class="ticker" href="/stock/pmna#NASDAQ">PMNA</a>) 
	The PowerShares MENA Frontier Countries Portfolio stands as one of the more compelling ETF options for Egypt exposure for a simple reason: Attractive country allocations. Egypt accounts for nearly 18 percent of PMNA's weight, but that is easily trumped by the 24.1 percent weight controlled by far steadier Kuwait.

	More importantly, United Arab Emirates and Qatar combine for 31 percent of the ETF's weight. Stocks in those countries have been among the world's best performers this year. Economic advancement and political stability in both nations has finally been rewarded <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/06/3678167/how-to-play-middle-easts-new-em-status-with-etfs">as both recently gained promotions to emerging markets status</a>.

	UAE and Qatar's new emerging markets status is expected to mean hundreds of millions, if not billions of dollars in new <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/06/3667304/the-bell-tolls-for-middle-east-etfs">foreign investment into these countries</a>.

	Until recently, Egypt has been a drag on PMNA, but if the country can establish true political stability, the ETF becomes all the more attractive. Still, PMNA is a legitimate play on the <a href="http://www.wisdomtree.com/blog/index.php/qatar-uae-the-ballgame-is-still-in-the-early-innings/">UAE and Qatar growth stories</a>, which are just getting going.

	For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

Intraday Update

Powershares MENA Frontieruntries Portfolio

PMNA

Egypt ETF Alternatives: Bets For The Adventurous

Here is the ETF Professor's ETF Watch List for Thursday, May 9, 2013.

Keep an eye on the Market Vectors Coal ETF (NYSE: <a class="ticker" href="/stock/kol#NYSE">KOL</a>).

Give the Vanguard Growth ETF (NYSE: <a class="ticker" href="/stock/vug#NYSE">VUG</a>) a look.

The First Trust Consumer Staples AlphaDEX (NYSE: <a class="ticker" href="/stock/fxg#NYSE">FXG</a>) should be in play.

Emerging markets plays of the day: Market Vectors Indonesia ETF (NYSE: <a class="ticker" href="/stock/idx#NYSE">IDX</a>), iShares S&amp;P Latin America 40 Index (NYSE: <a class="ticker" href="/stock/ilf#NYSE">ILF</a>) and the Market Vectors Africa Index ETF (NYSE: <a class="ticker" href="/stock/afk#NYSE">AFK</a>).

Forex play of the day: CurrencyShares Swiss Franc Trust (NYSE: <a class="ticker" href="/stock/fxf#NYSE">FXF</a>).

Bond play of the day: PIMCO Total Return ETF (NYSE: <a class="ticker" href="/stock/bond#NYSE">BOND</a>).

Sector ETFs

Broad U.S. Equity ETFs

New ETFs

Currency ETFs

Pre-Market Outlook

BOND

iShares Trust S&P Latin America 40 Index Fund

ETFs to Watch May 9, 2013 (FXG, ILF, VUG)

Here is the ETF Professor's ETF Watch List for Friday, May 3, 2013.

The SPDR Gold Shares (NYSE: <a class="ticker" href="/stock/gld#NYSE">GLD</a>) should be in play.

Give the ProShares UltraShort Oil &amp; Gas (NYSE: <a class="ticker" href="/stock/dug#NYSE">DUG</a>) a look.

The United States Natural Gas Fund (NYSE: <a class="ticker" href="/stock/ung#NYSE">UNG</a>) was a mess Thursday.

Keep an eye on the iShares MSCI EMU Index Fund (NYSE: <a class="ticker" href="/stock/ezu#NYSE">EZU</a>).

Emerging markets plays of the day: Market Vectors Africa Index ETF (NYSE: <a class="ticker" href="/stock/afk#NYSE">AFK</a>), iShares MSCI Thailand Investable Market Index Fund (NYSE: <a class="ticker" href="/stock/thd#NYSE">THD</a>) and the iShares MSCI Mexico Investable Market Index Fund (NYSE: <a class="ticker" href="/stock/eww#NYSE">EWW</a>).

Forex play of the day: PowerShares DB Dollar Bullish (NYSE: <a class="ticker" href="/stock/uup#NYSE">UUP</a>).

Bond play of the day: Market Vectors LatAm Aggregate Bond ETF (NYSE: <a class="ticker" href="/stock/bono#NYSE">BONO</a>).

BONO

iShares MSCI Thailand Investable Market Index Fund

PowerShares DB US Dollar Index Bullish Fund

ETFs to Watch May 3, 2013 (DUG, EWW, UNG)

Finally. That might be the reaction of those traders and investors that like riskier fare as the Global X Nigeria Index ETF (NYSE: NGE) finally debuted Wednesday, nearly <a href="http://www.benzinga.com/news/13/04/3464861/global-x-to-roll-out-nigeria-central-asia-etfs-on-wednesday">two years after the firm initially filed plans for the fund</a>.

	Interestingly, Global X was not the first ETF sponsor to file plans for a Nigeria ETF, but the firm can now say it is the first to have introduced such a product. With the debut of the Global X Nigeria Index ETF, Africa, a continent believed by some to be the last great investment frontier, now has three country-specific ETFs.

	The Market Vectors Egypt ETF (NYSE: <a class="ticker" href="/stock/egpt#NYSE">EGPT</a>) and the iShares MSCI South Africa Index Fund (NYSE: <a class="ticker" href="/stock/eza#NYSE">EZA</a>) are the other two.

	Prior to NGE's debut, the only credible ETF options for Nigeria exposure were the Market Vectors Africa ETF (NYSE: <a class="ticker" href="/stock/afk#NYSE">AFK</a>), which allocates nearly a quarter of its weight to the country, and the iShares MSCI Frontier 100 Index Fund (NYSE: <a class="ticker" href="/stock/fm#NYSE">FM</a>). That ETF has an almost 13.8 percent weight to Nigeria.

	And with the debut of NGE, investors now have another ETF option for <a href="http://www.benzinga.com/analyst-ratings/analyst-color/11/06/1179640/etfs-for-goldmans-next-11">getting exposure to the Goldman Sachs Next 11 countries</a>. Nigeria, which is classified as a frontier market, is part of that group.

	That is just one anecdote that investors may find attractive about NGE and the Nigerian investment thesis at large. Additionally, Nigeria is the 7th most populous country in the world and the most populous country in Africa with over 160 million people with nearly two-thirds of that population under the age of 25, <a href="http://www.globalxfunds.com/NGE/IC">Global X said citing World Bank data</a>.

	Nigeria also hauled in $8.9 billion in foreign direct investment last year, making it Africa's top FDI destination and the government hopes to increase that total to $16 billion this year, according to Global X. Predictably, it is Nigeria's energy industry that is on the receiving end of most foreign investment in the country.

	Not only is Nigeria a member of the Organization of Petroleum Exporting Countries, it is Africa's largest oil producer. The country, OPEC's seventh-largest producer, is expected to pump 2.3 million barrels per day this year. Nigerian oil is prized because most of it is of the light, sweet variety, meaning higher quality and lower refining costs.

	Given that the energy industry is a vital driver of Nigerian GDP, it is not surprising that NGE allocates more than 24 percent of its weight to the sector. Only financials at 41.3 percent loom larger in the new ETF. As experienced emerging and frontier markets investors know, many of the relevant ETFs for these markets feature large weights to banks and energy names.

	NGE does offer some exposure to potential advancements in Nigeria's domestic demand story going forward as consumer discretionary and staples names combine for nearly 25 percent of the ETF's weight. The ETF is home to 28 stocks and half of the top-10 holdings are banks.

	Still, investors should know what they are getting with Nigeria and oil simply cannot be left out of the equation. Oil makes up 15 percent of the country's GDP, two-thirds of the country's revenue and over 95 per cent of export earnings, <a href="http://allafrica.com/stories/201304030285.html">according to Renaissance Capital</a>.

	Nigeria's oil industry would arguably even more advanced if not for frequent rebel attacks on oil assets and kidnappings of industry workers there. Western oil majors such as Exxon Mobil (NYSE: <a class="ticker" href="/stock/xom#NYSE">XOM</a>) and Royal Dutch Shell (NYSE: RDS-A) see vast potential in Nigeria, but have also been forced to deal with substantial risk.

	Other risks include severe corruption, lack of government stability and military conflict. On the other hand, Nigeria is moving toward liberalization of its markets. Combine that with the bountiful oil reserves and favorable demographics, and NGE could be worth evaluating.

	The new ETF charges 0.68 percent year, making it less expensive than the comparable Egypt fund and the largest China ETF.

	For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

RDS-A

Under The Hood: The New Nigeria ETF 

Here is the ETF Professor's ETF Watch List for Wednesday October 17, 2012.

The Vanguard Consumer Discretionary ETF (NYSE: <a class="ticker" href="/stock/vcr#NYSE">VCR</a>) is worth a look.

The Market Vectors Coal ETF (NYSE: <a class="ticker" href="/stock/kol#NYSE">KOL</a>) looks interesting.

Earnings plays: Market Vectors Semiconductor ETF (NYSE: <a class="ticker" href="/stock/smh#NYSE">SMH</a>) and the Technology Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlk#NYSE">XLK</a>).

Emerging markets plays of the day: Market Vectors Africa ETF (NYSE: <a class="ticker" href="/stock/afk#NYSE">AFK</a>), iShares MSCI Brazil Index Fund (NYSE: <a class="ticker" href="/stock/ewz#NYSE">EWZ</a>) and the Global X FTSE Colombia ETF (NYSE: <a class="ticker" href="/stock/gxg#NYSE">GXG</a>).

Forex play of the day: CurrencyShares Swiss Franc Trust (NYSE: <a class="ticker" href="/stock/fxf#NYSE">FXF</a>).

Bond play of the day: PIMCO Total Return ETF (NYSE: <a class="ticker" href="/stock/bond#NYSE">BOND</a>).

Earnings

ETFs to Watch October 17, 2012 (FXF, SMH, XLK)

Perhaps the worst number to come along in the history of exchange-traded products is $100 million. As in $100 million in assets under management means the fund is "good," it will survive and it is now profitable for the issuer. 

The addiction to the $100 million in AUM equals a good ETF theory perhaps stems from a flawed report <a href="http://www.mckinsey.com/App_Media/Reports/Financial_Services/ETF_SecondActFINAL.pdf">from McKinsey</a> that used the number. That report takes a one-size-fits-all approach with the $100 million theory, but the reality is a fund's expense ratio plays a large part in the profitability of an ETF. Multiply an ETF's AUM by its expense ratio and there is an indication of the fund's revenue.

The $100 million in AUM number also does not take into account an ETF manager's ability to make money through securities lending, licensing fees or other external costs related to ETF management. Nor does it consider partnerships such as the one between Invesco's (NYSE: <a class="ticker" href="/stock/ivz#NYSE">IVZ</a>) PowerShares and Deutsche Bank (NYSE: <a class="ticker" href="/stock/db#NYSE">DB</a>) on ETFs such as the PowerShares DB Dollar Bullish (NYSE: <a class="ticker" href="/stock/uup#NYSE">UUP</a>).

In other words, the $100 million in AUM theory when it comes to ETFs is a lot <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/04/2465525/etf-opinion-the-100m-watermark-is-asinine">of malarkey and that much has been proven</a>. Still, some are attached to the number like they are attached to an old college fraternity sweatshirt wives beg husbands to get rid of. 

Fatal Attachment
References to 1980s movies aside, a fatal attachment might be different than a fatal attraction, but both are fatal. In this case, it is investors' portfolios that suffer on the advice that sub-$100 million ETFs should be shunned like Hester Prynne. 

There are <a href="http://etfdb.com/screener/">14 equity-based ETFs with less than $100 million in AUM that have gained at least 20 percent</a> year-to-date. Some are actually well known given their diminutive status. Others are not as risky as investors might have been lead to believe. 

Even by treating the Market Vectors Egypt ETF (NYSE: <a class="ticker" href="/stock/egpt#NYSE">EGPT</a>) and its almost 61 percent year-to-date pop as an outlier, there are still plenty of noteworthy performances among sub-$100 million AUM funds. Actually, EGPT should not be treated as an outlier because the ETFs has <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/09/2939089/these-etfs-have-topped-techs-big-3">Apple (NASDAQ: </a><a class="ticker" href="/stock/aapl#NASDAQ">AAPL</a>), Amazon (NASDAQ: <a class="ticker" href="/stock/amzn#NASDAQ">AMZN</a>) and Google (NYSE: <a class="ticker" href="/stock/goog#NYSE">GOOG</a>) this year. Apple is the closest and it still lags EGPT by more than 500 basis points.

Speaking of Egypt, a case can be made that the country's 19.1 percent weight in the Market Vectors Africa ETF (NYSE: <a class="ticker" href="/stock/afk#NYSE">AFK</a>) gain almost 22 percent this year. Naysayers would assert neither AFK nor EGPT are cheap. That would be correct as the funds charge 0.78 percent and 0.94 percent per year, respectively. So the average expense ratio between the two is 0.86 percent, but that comes nowhere close to putting a dent into an average gain north of 40 percent.

The List Goes On
Investing in Africa is an acquired taste. Given elevated political volatility and opaque legal systems, among other concerns, it is understandable that some investors would want to pass on the continent. Still, are plenty of ETFs with less than $100 million in assets that have been on fire this year.

There is the case of the PowerShares Dynamic Building &amp; Construction Portfolio (NYSE: <a class="ticker" href="/stock/pkb#NYSE">PKB</a>). Under normal circumstances, PKB's 31 percent year-to-date gain would be impressive, but its larger rivals, the iShares Dow Jones US Home Construction Index Fund (NYSE: <a class="ticker" href="/stock/itb#NYSE">ITB</a>) and the SPDR S&amp;P Homebuilders ETF (NYSE: <a class="ticker" href="/stock/xhb#NYSE">XHB</a>) are up 63.2 percent and 44.2 percent, respectively. 

While it is understandable that PKB has been overshadowed by its larger rivals, it is odd that with all the praise being heaped on shares of home builders this year, that this $41.5 million ETF does not get much press.

Staying at the sector level, investors that have opted for the giant Consumer Discretionary Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xly#NYSE">XLY</a>) have been rewarded with a gain of 18.5 percent this year. They could have done better with the PowerShares Dynamic Leisure and Entertainment Portfolio (NYSE: <a class="ticker" href="/stock/pej#NYSE">PEJ</a>), which is up almost 21 percent.

PEJ, which has $53.1 million in AUM, is another example of some experts creating too much drama around low asset ETFs. The ETF is not home to obscure stocks as Yum! Brands (NYSE: <a class="ticker" href="/stock/yum#NYSE">YUM</a>) and Walt Disney (NYSE: <a class="ticker" href="/stock/dis#NYSE">DIS</a>), among other recognizable names, are found in PEJ's lineup. PEJ's average daily volume of just over 32,000 shares may not sound like much, but most of its underlying components are heavily traded, ensuring sufficient liquidity for the fund.

On a related note, the PowerShares S&amp;P SmallCap Consumer Discretionary Portfolio (NASDAQ: <a class="ticker" href="/stock/pscd#NASDAQ">PSCD</a>), which was designed to be the small-cap rival to XLY, has outperformed its large-cap cousin this year as well. PSCD is up almost 20 percent and has just $61.7 million in AUM.

Heading back overseas, investors need not have taken on excessive risk with sub-$100 million ETFs this year. Indeed, the aforementioned AFK and EGPT do qualify as "risky." There is also a fair number of other emerging markets funds that have surged more than 20 percent this year despite having less than $100 million in assets. 

Investors could have skirted the emerging markets risk by heading to developed Europe. For example, the iShares MSCI Belgium Investable Market Index Fund (NYSE: <a class="ticker" href="/stock/ewk#NYSE">EWK</a>) has gained almost 20 percent this year. That move is due in large part to bullishness in Anheuser-Busch InBev (NYSE: <a class="ticker" href="/stock/bud#NYSE">BUD</a>), which accounts for 23.5 percent of EWK's weight. That ETF has less than $29 million in AUM.

Critics would likely assert that risk is elevated with EWK because Belgium is a Eurozone member. Fair enough, but there is an answer. Investors could have avoided that risk and gained better returns by <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/08/2839102/as-europe-etfs-rebound-nordic-plays-flex-their-muscles">turning to Nordic ETFs</a>. The Global X FTSE Nordic Region ETF (NYSE: <a class="ticker" href="/stock/gxf#NYSE">GXF</a>) and the Global X Norway ETF (NYSE: <a class="ticker" href="/stock/norw#NYSE">NORW</a>) are up 20.1 percent and 22.3 percent, respectively, year-to-date.

Given Norway's <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/08/2876423/3-etfs-for-countries-with-solid-gdp-rates">solid GDP growth, a massive sovereign wealth fund</a> and pristine balance sheet, assuming that the biggest risk to NORW is that is has less than $100 million in assets borders on the absurd.

For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

AAPL

AMZN

iShares MSCI Belgium Ivestable Market Index Fund

GOOG

iShares Dow Jones US Homenstruction Index Fund

NORW

PowerShares ETF Leisure & Entertainment Port

PowerShares ETF Trust Dynamic Building &nstruction Portfolio

PSCD

Select Sector SPDR-Consumer Discretionary

Ignoring Sub-$100M ETFs: A Costly Idea

South Africa's investment thesis is bifurcated. On one hand, this is Africa's largest economy and by far the most advanced. The country is the world's largest platinum producer and a major producer of gold and palladium. 

South Africa's ascent up the global economic ladder has prompted some experts to add the country as the "S" in BRICS, joining the country with Brazil, Russian, India and China. Even if not all can agree that South Africa belongs in the BRIC house, it is a part <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/08/2807855/how-will-the-civets-etfs-perform-the-rest-of-2012">of the CIVETS acronym</a>. 

Those superlatives do not obfuscate South Africa's challenges, which include a history of political volatility and an unemployment rate that stood at 24 percent at the end of the second quarter. In a post on Dr. Mark Mobius' blog, Franklin Templeton Senior Vice President and Managing Director Johan Meyer explores the good and the bad facing investors in South Africa.

Noting South Africa's history of political divisiveness, Meyer also highlighted the country's ability to reinvent itself, saying "While significant social and economic problems still persist today, I believe South Africa and its people appear potentially well positioned for greater long-term prosperity."

Reinvention aside, South Africa is still viewed by many outsiders as a materials/precious metals play. The $506.3 million iShares MSCI South Africa Index Fund (NYSE: <a class="ticker" href="/stock/eza#NYSE">EZA</a>) devotes almost 19 percent of its weight to materials stocks, making the sector the second-largest in the ETF.

"Commodities, particularly metals and minerals, are very important to South Africa's economy," Meyer said. "South Africa is one of the world's leading mining and mineral processors, with roughly three-quarters of the world's platinum production and a significant share of others including palladium, gold, manganese and diamond."

Recent labor unrest at South African mines has plagued EZA and other ETFs with significant exposure to the country. The strikes have <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/10/2974614/labor-unrest-could-hit-south-africa-etfs?utm_source=feedburner&amp;utm_medium=feed&amp;utm_campaign=Feed%3A+benzinga%2Fnews+%28Channels+-+News%29">also punished the rand, South Africa's currency</a>. 

Perhaps investors have become jittery after learning of the oppressive conditions in which South African miners toil to bring diamonds, gold and platinum to market. Whatever the reason, EZA is off 4.4 percent in the past month. The SPDR S&amp;P Emerging Middle East &amp; Africa ETF (NYSE: <a class="ticker" href="/stock/gaf#NYSE">GAF</a>), which allocates almost 91 percent of its weight to South Africa, has lost 91 percent over the same period while the WisdomTree Dreyfus South African Rand ETF (NYSE: <a class="ticker" href="/stock/szr#NYSE">SZR</a>) has given up 3.7 percent.

Strife in the mining sector epitomizes the risks inherent with investing in South Africa. As Meyer noted, the sector accounted for 8.6 percent of the country's GDP in 2010.

"...if the global economy improves, higher commodity prices could be a boost to the South African economy. While there is some concern inflation on a global scale could accelerate given the easy monetary policies and stimulative measures central banks (particularly in developed markets) have been engaging in, at the moment inflationary pressure appears to be contained in South Africa...," <a href="http://mobius.blog.franklintempleton.com/2012/10/10/south-africas-potential/">Meyer said in the post</a>.

The country has Africa's most advanced banking system and, as Meyer notes, the 18th-largest stock market in the world. Unfortunately, South African banks are far from immune from the strikes. Earlier this month, Moody's Investors Service pared its rating on the foreign deposit ratings of the five largest banks in South Africa. In September, the ratings agency cut South Africa's sovereign debt rating to Baa1 from A3. Financials account for 25.4 percent of EZA's weight and 28.5 percent of GAF's weight.

The good news is that the International Monetary Fund expects South Africa's GDP to grow 2.6 percent this year and additional improvement is expected in 2013. Citing that statistic and the country's corporate governance policies, Meyer said "I think we are in a good position to seek opportunities arising from the long-term growth potential in South Africa, and across this vast, developing continent."

Those looking for more diversity when it comes to Africa ETFs should consider the Market Vectors Africa ETF (NYSE: <a class="ticker" href="/stock/afk#NYSE">AFK</a>). South Africa is the ETF's largest country weight at 25.6 percent, but Nigeria and Egypt combine for 38.6 percent of the fund's weight. AFK has significantly outperformed EZA and GAF this year.

For more on South Africa and ETFs, click <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/05/2620955/the-definitive-africa-etf-guide">here</a>.

Analyst Color

Forex

Management

WisdomTree Dreyfus South African Rand Fund

South Africa: Profits And Peril

Market Commentary: Regime Change

Betting against the US stock market has been a losing trade in relative terms in recent years and from a top-down down perspective it's not obvious that's about to change.

Africa Stocks May Be Close To Overtaking US Equities In 2024

Weekly Commentary: Unstable

Weekly Commentary: Something Of A Victory Lap

Africa stocks are rebounding from an extended two-year slump and so year-to-date comparisons obscure longer-run underperformance vs. the US market.

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VanEck Africa Index ETF

Overview

VanEck Africa Index ETF (ARCA:AFK), Quote.Headers.trade-ideas