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VanEck Africa Index ETF is the only ETF claiming to offer broad African equity exposure, but structural flaws warrant a sell rating. AFK's passive selection rules result in inappropriate holdings, excessive basic materials and bank concentration, and minimal exposure to African consumer spending. The ETF's high expense ratio (0.88%) further undermines its long-term attractiveness despite recent outperformance versus the S&P 500.
A new year is here and Bull vs. Bear is back!
2025 was a big year for ex-U.S. equities, as a declining dollar, tariff uncertainty, and domestic concentration risk drove investors abroad. Broad ex-U.S. equities performed well and rewarded those investors, but it was some notable subregions that really delivered.
NEW YORK--(BUSINESS WIRE)--VanEck announced today the 2025 annual distributions per share for its VanEck equity exchange-traded funds.
Global equities strategies are having a moment this year. The SPDR S&P 500 ETF in isolation looks strong, posting an 18.3% year-to-date gain.
A long-time portfolio manager and MoneyShow contributor, Jonathan Hoenig of Capitalistpig Hedge Fund, suggested during last week's MoneyShow livestream that viewers check out the VanEck Africa Index ETF (AFK). AFK is stair-stepping higher, and now up more than 57% year-to-date. The 50-day moving average is acting as support on pullbacks, while the 200-day is increasing its upward slope. Volume is picking up and RSI is strong. As of late last week, AFK owned 78 stocks. Materials (34.9%) and financials (31.3%) were easily the most heavily weighted by sector. By country, South African stocks made up 34.9% of the fund, with Moroccan names next at 13.6%.
Emerging markets investing has had an overall positive year in 2025. Entering the year, with many U.S. investors underweight foreign equities, some market watchers anticipated big opportunities abroad.
It's the year of foreign equities ETF diversification and performance. For many ETF issuers, their international or ex-U.S. ETF strategies have led their suites for performance amid rising domestic risks.