Bullish on Africa With AFK

A couple of weeks ago, I was still searching for a stock with which to play Africa.

Well, I finally got into AFK, which is an exchange traded fund (ETF) that tracks the Dow Jones Africa Titans 50 Index.

Now my portfolio is exposed to every nook and cranny of the world, and AFK constitutes 9% of the portfolio. Yeah, that's right...9%!

I got into AFK at $22 a piece, well before the stock crossed its 200-day moving average to the upside, which is always a bullish technical signal.

Here's Jim Cramer of CNBC's Mad Money show talking up AFK in the video below.
Yes, like Cramer said, over a quarter of AFK is weighted in South African stocks, but i have a feeling this will gradually change as the economies of smaller African countries kick into gear.

In fact, it has to change. Take a look the latest sector allocation for AFK, Banks, Basic Materials, Oil & Gas, and Telecoms dominate the list. Three of these sectors - excluding Basic Materials - are growing fastest not in South Africa but in other African countries. Therefore, at some point the fund will have to account for this faster growth in smaller countries.

As at the close of trading on May 22, 2009, I'm up almost 18% from my entry point into AFK, so I'm sitting pretty.

However, compared to other emerging market ETFs, AFK still has a long way to go in terms of year-to-date (YTD) returns.

Let's go Africa!