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.
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| RR rosemary richard WCG Wealth Advisors LLC | 10,838 | $264,122.06 | $280,920.96 | $16,798.9 | 6.36% |
Jane Bortnem Cherry Tree Wealth Management, LLC | 462 | $11,259 | $11,804.1 | $545.1 | 4.84% |
Christopher C. Powers Farther Finance Advisors, LLC | 808 | $21,616 | $20,393.92 | -$1,222.08 | -5.65% |
| MA Marie-Andree Alain Federation des caisses Desjardins du Quebec | 30 | $605 | $765.9 | $160.9 | 26.6% |
| HAS Hayley A. Snell LRI Investments, LLC | 44 | $1,072 | $1,111.02 | $39.02 | 3.64% |
| ARCA Exchange | US Country |
The fund focuses on investing primarily in securities that are part of its benchmark index, which is composed of African companies. This broad definition encompasses both companies that are incorporated within Africa and those that are based outside the continent but derive at least half of their revenues or have significant assets there. By maintaining at least 80% of its total assets in these securities, the fund aims to provide investors with a focused yet diversified exposure to the African economy.
The fund offers a variety of investment opportunities, centered around its core strategy of investing in African companies as defined by its benchmark index. The products and services provided cater to investors looking to tap into the growth potential of the African market.
Investments are primarily made in companies that are either incorporated in Africa or have significant economic ties to the continent through revenue or assets. This allows investors to gain exposure to the African market's growth potential.
The fund includes both local listings of companies that are incorporated within Africa and international listings of companies that, despite being incorporated outside of Africa, have at least 50% of their revenues/related assets in the continent. This dual approach provides a broad market exposure, including to multinational companies benefiting from African growth.