Rebounding Economy & Rising Exports Put Spotlight On Thai ETF
Zacks Investment Research | May 23, 2018 08:55AM ET
Thailand’s economy is rebounding with a rise in exports and growth in its tourism sector. GDP grew 4.8%, which is the highest since 2013. Money Expo 2018 was organized where insurance firms, brokerage houses and financial institutions discussed and presented their best offerings. The offerings extend from housing loans with zero interest for one year, zero interest for two years in case of reverse mortgages, and deposit rates at 4% to the SME sector.
Eastern Economic Corridor (EEC)
After General Prayut Chan-ocha took control of Thailand via military coup in 2014, foreign companies have preferred the country compared to the likes of Indonesia and Malaysia. Labor-intensive manufacturing is slowly being abolished and investment destinations have been created in the eastern province namely Thailand Keeps Rates Steady: ETFs in Focus ).
In the current scenario, let’s take a look at the Thailand ETF.
THD in Focus
IShares MSCI Thailand Capped ETF (AX:THD) tracks the investment results of a broad-based index composed of Thai equities MSCI Thailand IMI (LON:IMI) 25/50 Index. It charges annual fees of 62 basis points and has $475.3 million of assets in its portfolio. Comprising 125 holdings, the fund has daily traded volume of 224,000. From an individual holdings perspective, the fund has high exposure to PTT, CP All and Airports of Thailand, with 12%, 8% and 6% allocation, respectively. Energy, Financials and Consumer Staples are the top 3 sector holdings with 21.7%, 17.5% and 12.4% respectively. It has returned 3.42% on a year-to-date basis and has an ETF Rank #2 (Buy) (read: Thailand ETF (THD) Hits a New 52-Week High ).
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