PT - JOURNAL ARTICLE AU - Dave Berger AU - Kuntara Pukthuanthong AU - J. Jimmy Yang TI - Is the Diversification Benefit of Frontier Markets Realizable by Mean-Variance Investors? <em>The Evidence of Investable Funds</em> AID - 10.3905/jpm.2013.39.4.036 DP - 2013 Jul 31 TA - The Journal of Portfolio Management PG - 36--48 VI - 39 IP - 4 4099 - https://pm-research.com/content/39/4/36.short 4100 - https://pm-research.com/content/39/4/36.full AB - The authors investigate whether the diversification benefits of frontier markets are realizable. They focus on investable frontier exchange-traded funds (ETFs) and their corresponding indices. Their analysis ncludes directly measuring the economic benefits of frontier-market diversification, as well as considering frontier-market trading dynamics. Evidence indicates that frontier markets offer diversification benefits through risk-reducing potential. The authors find that frontier market volatility tends to be largely idiosyncratic, which supports the risk-reducing role of frontier markets. Their comparison of funds and indices indicates that, to the extent that frontier-market indices offer hypothetical benefits, traders can obtain these benefits by using investable funds.TOPICS: Exchange-traded funds and applications, volatility measures, in markets