Africa

Africa mutual funds and ETFs invest in a wide range of asset... Africa mutual funds and ETFs invest in a wide range of asset classes, including equities, fixed income, commodities, and alternatives, in a range of countries or regions within and around the African continent. The African economy is characterized by significant external financing needs, low incomes relative to the rest of the world, and real GDP growth that has exceeded the global average in recent years. These funds may have allocations, depending on their mandate, to different countries in Africa. Several of these funds and ETFs can be actively managed as they require special knowledge of foreign markets and active management may increase the chances of generating a higher return compared to an index fund or passive ETF. As a result, these funds can have the flexibility to allocate funds to one or a combination of different asset classes depending on the fund objective and economic environment. The fixed-income portion of these funds may invest in debt securities varying by type (government or corporate), credit quality (investment-grade or junk), duration (short or long), and strategy (inflation-protected or sector-diversified). The equity portion of these funds may invest in common equities, and these can vary by market capitalization (small or large), dividend income (total income or high income), and strategy (sector-based or factor-based), among others. The alternatives portion of these funds may invest in strategies including real estate, currency trading, commodities, derivatives or other techniques relying on volatility, hedge fund, or quantitative strategies. More conservative-minded investors may purchase mutual funds and ETFs with exposure to a country such as South Africa, whereas a more aggressive investor may own a fund geared towards a more frontier market, such as Rwanda. Last Updated: 11/27/2024 View more View less

Africa mutual funds and ETFs invest in a wide range of asset classes, including equities, fixed income, commodities, and alternatives, in a range of countries or regions within and around the African continent.... Africa mutual funds and ETFs invest in a wide range of asset classes, including equities, fixed income, commodities, and alternatives, in a range of countries or regions within and around the African continent. The African economy is characterized by significant external financing needs, low incomes relative to the rest of the world, and real GDP growth that has exceeded the global average in recent years. These funds may have allocations, depending on their mandate, to different countries in Africa. Several of these funds and ETFs can be actively managed as they require special knowledge of foreign markets and active management may increase the chances of generating a higher return compared to an index fund or passive ETF. As a result, these funds can have the flexibility to allocate funds to one or a combination of different asset classes depending on the fund objective and economic environment. The fixed-income portion of these funds may invest in debt securities varying by type (government or corporate), credit quality (investment-grade or junk), duration (short or long), and strategy (inflation-protected or sector-diversified). The equity portion of these funds may invest in common equities, and these can vary by market capitalization (small or large), dividend income (total income or high income), and strategy (sector-based or factor-based), among others. The alternatives portion of these funds may invest in strategies including real estate, currency trading, commodities, derivatives or other techniques relying on volatility, hedge fund, or quantitative strategies. More conservative-minded investors may purchase mutual funds and ETFs with exposure to a country such as South Africa, whereas a more aggressive investor may own a fund geared towards a more frontier market, such as Rwanda. Last Updated: 11/27/2024 View more View less