Topic: How To Invest

Pat: Could I please get your recommendations on investments in Africa? I am looking at two ETFs: iShares MSCI South Africa ETF and the more broadly based Market Vectors Africa Index ETF. Thanks.

Article Excerpt

Market Vectors Africa Index ETF, $32.10, symbol AFK on New York (Units outstanding: 4.0 million; Market cap: $128.4 million; www.vaneck.com), aims to match the performance of the Market Vectors GDP Africa Index. This index tracks the performance of the largest and most liquid companies in Africa. A country’s weighting in the index is determined by the size of its gross domestic product. The ETF’s top holdings are Commercial International Bank Egypt SAE, Guaranty Trust Bank plc (Nigeria: banking), Acergy SA (U.K.: offshore oilfield services), Zenith Bank plc (Nigeria: banking), Orascom Telecom Holding SAE (Egypt: telecom), Nigerian Breweries plc, Naspers Ltd. (South Africa: media and Internet), Talaast Moustafa Group (Egypt: real estate), Attijarwafa Bank (Morocco: banking) and Tullow plc (U.K.: oil and gas). The Market Vectors Africa Index ETF holds 20.5% of its assets in Egyptian stocks and 20.2% in South African stocks, but also 15.4% in Nigeria, 6.6% in Morocco, 2.2% in Zambia, 1.8% in Tanzania, 1.5% in Kenya and 0.3% in Sierra…