Africa will not be the first thing to come to mind while thinking of investing. Is that a justified opinion? Well, yes and no. It is true that Africa is often making more negative headlines than positive ones. In many countries the national economy is still not on a sound path.
But, on the other hand, there are countries in the African continent that really are developing in the right way. Add to that the fact that chances of real explosive growth are biggest in economies that lack way behind.
I sincerely do believe that Africa will eventually develop into a very prospering continent without wars and widespread poverty. Investing in this Africa ETF only based upon that highly positive statement would be unwise however.
Lyxor Pan Africa UCITS ETF
I really believe that this Lyxor Pan Africa ETF is very interesting indeed. This regional ETF is tracking the SGI Pan Africa index which contains the 30 largest publicly traded companies in the African continent.
That is exactly is the reason I am following this Africa ETF on a daily basis. These 30 companies are expected to grow significantly, both within the African continent as outside Africa. But we will have to monitor the sometimes unstable typically African situations closely.
Entering this Africa ETF on a sharp decrease (and these negative bumps occur regularly) would be the best strategy. That is why I follow this ETF very closely. This Lyxor Pan Africa ETF is based upon a swap. Mind, it is not a cheap one with a TER of 0,85%.
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Lyxor Pan Africa UCITS ETF info:
ETF provider: Lyxor (Societe Generale)
Exchange: Euronext Parijs
This Lyxor Pan Africa UCITS ETF has quotations on different exchanges and is known under several ticker symbols. As long as the ISIN number is identical you are dealing with the same ETF.