iShares MSCI Frontier and Select EM ETF (FM): Complete Beginner's Guide
Last updated: March 2026 • BlackRock • Frontier Markets
Expense Ratio
0.79%
AUM
$500.0M
Dividend Yield
3.50%
Inception
2012
Beginner Score
9.5/10
What is iShares MSCI Frontier and Select EM ETF?
FM provides exposure to frontier and small emerging market countries that are too small or underdeveloped to be included in standard emerging market indices. It holds stocks from markets like Vietnam, Nigeria, Kazakhstan, and Bangladesh. This fund offers investors access to some of the world's youngest and fastest-urbanizing economies that are in the earliest stages of capital market development.
FM is managed by BlackRock and has been available since 2012. With $500.0M in assets under management, it's a growing fund that has attracted significant investor interest. The fund charges an expense ratio of 0.79%, which means for every $10,000 you invest, you pay approximately $79 per year in management fees.
FM at a Glance — Key Metrics
| Expense Ratio | 0.79% |
| Total Holdings | 150 |
| P/E Ratio | 10.0 |
| Beta | 0.80 |
| Dividend Yield | 3.50% |
| AUM | $500.0M |
| Inception Year | 2012 |
| Issuer | BlackRock |
Top 10 Holdings in FM
FM holds 150 different securities. Here are the largest positions that make up the core of this fund:
| # | Company | Ticker | Weight |
|---|---|---|---|
| 1 | Vietnam Dairy Products (Vinamilk) | VNM.VN | 5.00% |
| 2 | FPT Corp. | FPT.VN | 4.00% |
| 3 | Commercial International Bank (Egypt) | COMI.CA | 3.50% |
| 4 | Dangote Cement | DANGCEM.LG | 3.00% |
| 5 | Safaricom PLC | SCOM.NR | 3.00% |
| 6 | National Bank of Kuwait | NBK.KW | 2.50% |
| 7 | Halyk Savings Bank (Kazakhstan) | HSBK.KZ | 2.00% |
| 8 | BRAC Bank (Bangladesh) | BRACBANK.BD | 2.00% |
| 9 | Vinhomes JSC | VHM.VN | 2.00% |
| 10 | Zenith Bank (Nigeria) | ZENITHBA.LG | 1.80% |
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FM Performance History
Here's how FM has performed over different time periods. Remember that past performance doesn't guarantee future results, but it gives you a sense of the fund's track record:
YTD
1.00%
1 Year
6.00%
3 Year
2.00%
5 Year
3.00%
10 Year
2.00%
Beginner Suitability Score: 9.5/10
Our proprietary Beginner Suitability Score evaluates ETFs based on five factors that matter most to new investors: fees, volatility, diversification, dividend history, and track record length.
FM scores 9.5/10 because it has very low fees, shows lower-than-average volatility, offers broad diversification across 150 holdings, and has been available since 2012, giving it a proven track record.
How to Buy FM — Step by Step
- Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
- Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
- Search for "FM" — Use the search bar in your brokerage platform to find iShares MSCI Frontier and Select EM ETF.
- Place your order — Choose "Market Order" for simplicity or "Limit Order" if you want to set a specific price. Enter how many shares (or dollar amount) you want to buy.
- Set up automatic investing — Most brokers let you schedule recurring purchases (e.g., $100/month on the 1st). This is dollar cost averaging in action.
Dollar Cost Averaging Into FM
Here's what consistent monthly investing could look like over time, assuming an average annual return of 8% (approximate historical stock market average):
| Monthly | 10 Years | 20 Years | 30 Years |
|---|---|---|---|
| $100/mo | $18,417 | $59,295 | $150,030 |
| $250/mo | $46,041 | $148,237 | $375,074 |
| $500/mo | $92,083 | $296,474 | $750,148 |
*Projections assume 8% average annual return with monthly compounding. Actual returns will vary. Past performance doesn't guarantee future results.
Fee impact: With FM's expense ratio of 0.79%, a $10,000 investment would lose approximately $6,365 to fees over 20 years compared to a zero-fee investment. This is significant — consider whether the fund's strategy justifies these costs.
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Pros and Cons of FM
Pros
- ✓Access to frontier economies with the youngest populations and fastest urbanization rates globally
- ✓Very low correlation with US and developed market stocks provides genuine portfolio diversification
- ✓Extremely low valuations with single-digit P/E ratios across many frontier market holdings
- ✓Vietnam's rapidly growing economy offers emerging market growth at frontier market prices
Cons
- ✗Low liquidity in underlying frontier market stocks can lead to wider bid-ask spreads
- ✗Political instability, weak institutions, and currency controls in many frontier markets
- ✗Small AUM and limited investor interest may result in tracking error and higher trading costs
FM vs Similar ETFs
See how FM stacks up against similar funds:
Frequently Asked Questions
Is FM a good ETF for beginners?▾
FM has a Beginner Suitability Score of 9.5/10 on our scale. This makes it a strong choice for new investors due to its low fees and broad diversification.
What is the expense ratio of FM?▾
FM has an expense ratio of 0.79%. This means for every $10,000 you invest, you pay approximately $79 per year in fees. This is considered very low and cost-efficient.
How much money do I need to invest in FM?▾
You can invest in FM with as little as $1 through brokers that offer fractional shares (like Fidelity, Schwab, or Robinhood). There is no minimum investment required beyond the share price itself, which changes daily. Dollar cost averaging — investing a fixed amount regularly — is a popular strategy.
Does FM pay dividends?▾
Yes, FM pays dividends with a current yield of approximately 3.50%. Dividends are typically paid quarterly and can be reinvested automatically through most brokers.
What are the top holdings in FM?▾
The top holdings in FM include Vietnam Dairy Products (Vinamilk) (5.00%), FPT Corp. (4.00%), Commercial International Bank (Egypt) (3.50%), and more. The fund holds 150 total positions, providing broad diversification across many companies.