Investors: Remember when you thought an exchange-traded fund targeting Nigeria sounded over the top?

Here comes Global X Pakistan (PAK), the first ETF to offer local exposure to Pakistan’s stock market. For individual investors, this means easy access to a market you might otherwise never be able to tap.

So should you?

Pakistan is a “frontier” market—it’s less developed, less liquid, and less stable than even the emerging markets. Frontier markets are those hoping to someday graduate to emerging-markets status, as Qatar and the United Arab Emirates did last year. They can produce big returns, and big losses. Many refer to them as “pre-emerging.” This is where Brazil and China were in the 1990s.

Investors: Remember when you thought an exchange-traded fund targeting Nigeria sounded over the top?

Here comes Global X Pakistan (PAK), the first ETF to offer local exposure to Pakistan’s stock market. For individual investors, this means easy access to a market you might otherwise never be able to tap.

So should you?

Pakistan is a “frontier” market—it’s less developed, less liquid, and less stable than even the emerging markets. Frontier markets are those hoping to someday graduate to emerging-markets status, as Qatar and the United Arab Emirates did last year. They can produce big returns, and big losses. Many refer to them as “pre-emerging.” This is where Brazil and China were in the 1990s.