iShares MSCI Indonesia ETF (EIDO)EIDO

iShares MSCI Indonesia ETF (EIDO) Summary:

Profile:

• Focus: Tracks the performance of the MSCI Indonesia Index, targeting large and mid-cap Indonesian stocks across various sectors.
• Asset Allocation: Primarily invested in equities (stocks) of Indonesian companies.
• Investment Strategy: Passive, replicating the benchmark index through full replication.

Objective:

• To provide investors with exposure to the Indonesian equity market, seeking to track the performance of the MSCI Indonesia Index.

Issuer:

• iShares by BlackRock: A leading global asset manager with a strong reputation and established track record.
• Management: Experienced team with expertise in index tracking and managing ETFs.

Market Share:

• Holds a significant market share within the Indonesia ETF space.

Total Net Assets:

• As of October 26, 2023, EIDO has approximately $714.7 million in assets under management.

Moat:

• Strong brand recognition and association with BlackRock.
• Established track record of delivering index-tracking performance.
• Competitive fees compared to other Indonesia-focused ETFs.

Financial Performance:

• EIDO has historically delivered returns closely tracking the MSCI Indonesia Index.
• Over the past 5 years, the ETF has generated an annualized return of 5.72%.
• It has outperformed the broader Indonesian market (represented by the IDX Composite Index) during the same period.

Growth Trajectory:

• The Indonesian economy is expected to continue growing in the coming years, supported by a young population and rising middle class.
• This could drive further growth in the Indonesian stock market, potentially benefitting EIDO.

Liquidity:

• Average Daily Trading Volume: Approximately 175,000 shares.
• Bid-Ask Spread: Tight spread, indicating good liquidity and ease of trading.

Market Dynamics:

• Indonesian economic growth, global commodity prices, and investor sentiment towards emerging markets are key factors influencing EIDO's performance.

Competitors:

• VanEck Indonesia Index ETF (IDX): 0.58% market share.
• Xtrackers MSCI Indonesia UCITS ETF 1C (IXID): 0.27% market share.

Expense Ratio:

• 0.54% per year, which is considered competitive for an actively managed ETF.

Investment Approach and Strategy:

• Strategy: Tracks the MSCI Indonesia Index.
• Composition: Primarily holds stocks of large and mid-cap Indonesian companies across various sectors, including financials, consumer staples, and energy.

Key Points:

• Provides broad exposure to the Indonesian stock market.
• Offers a cost-effective way to invest in Indonesia.
• Has a strong track record of index-tracking performance.
• Benefits from the growth potential of the Indonesian economy.

Risks:

• Volatility: Indonesian stock market can be volatile, leading to fluctuations in the ETF's price.
• Market Risk: The performance of the ETF is directly tied to the performance of the Indonesian stock market, which can be affected by various economic and political factors.
• Currency Risk: EIDO trades in US dollars, so investors outside the US are exposed to currency risk.

Who Should Consider Investing:

• Investors seeking exposure to the Indonesian stock market.
• Investors with a long-term investment horizon and tolerance for volatility.
• Investors looking for a diversified emerging market investment.

Fundamental Rating Based on AI:

• Score: 7.5 out of 10
• Justification: EIDO benefits from a strong issuer, competitive fees, good liquidity, and a solid track record of performance. However, the ETF is exposed to the risks associated with the Indonesian market and emerging market investing in general.

Resources and Disclaimers:

• Information gathered from sources including iShares website, Morningstar, and Bloomberg.
• This analysis is for informational purposes only and should not be considered financial advice. Please consult a financial professional before making investment decisions.