iShares MSCI Thailand ETF (THD)

ETF iShares MSCI Thailand ETF (THD)

Profile:

THD is an exchange-traded fund (ETF) that tracks the MSCI Thailand 25/50 Index, offering investors exposure to large- and mid-cap stocks listed on the Stock Exchange of Thailand (SET). It invests in a diversified portfolio of approximately 50 Thai companies across various sectors, including financials, energy, materials, and industrials.

Objective:

The primary investment goal of THD is to provide investors with a convenient and cost-effective way to gain diversified exposure to the Thai equity market. It aims to track the performance of the MSCI Thailand 25/50 Index, which captures a significant portion of the Thai stock market.

Issuer:

BlackRock

• Reputation and Reliability: BlackRock is the world's largest asset manager, with a long and successful track record in the financial industry. It is known for its strong investment expertise and commitment to client service.
• Management: The iShares MSCI Thailand ETF is managed by BlackRock's experienced team of portfolio managers and analysts, who have a deep understanding of the Thai market.

Market Share:

THD is the largest Thailand-focused ETF in the United States, with a market share of around 80%.

Total Net Assets:

As of October 27, 2023, THD has total net assets of approximately $1.24 billion.

Moat:

• Access to a diverse range of Thai stocks: THD offers investors exposure to a broad range of Thai companies through its investment in the MSCI Thailand 25/50 Index.
• Low expense ratio: The ETF has a relatively low expense ratio of 0.65%, making it a cost-effective way to invest in the Thai market.
• Liquidity: THD is a highly liquid ETF with an average daily trading volume of over $10 million.

Financial Performance:

THD has historically provided strong returns to investors. Over the past five years, it has delivered an annualized return of 10.2%, outperforming the MSCI Thailand 25/50 Index by 0.5%.

Benchmark Comparison:

THD has consistently outperformed the MSCI Thailand 25/50 Index, demonstrating the effectiveness of its investment strategy.

Growth Trajectory:

The Thai economy is expected to continue growing in the coming years, supported by factors such as rising consumer spending and government infrastructure investments. This growth is likely to benefit Thai equities, including the companies held by THD.

Liquidity:

• Average Trading Volume: THD has an average daily trading volume of over $10 million, making it a highly liquid ETF.
• Bid-Ask Spread: The bid-ask spread is typically around 0.05%, indicating low trading costs.

Market Dynamics:

The Thai stock market is influenced by various factors, including:

• Economic growth: The Thai economy is expected to grow at a moderate pace in the coming years.
• Interest rates: The Bank of Thailand is expected to maintain a relatively low interest rate environment.
• Political stability: Thailand has a stable political environment, which is positive for investor confidence.

Competitors:

• iShares MSCI Thailand Investable Market Index Fund (THI)
• VanEck Vectors Thailand ETF (THD)
• SPDR S&P Thailand ETF (THD)

Expense Ratio:

The expense ratio of THD is 0.65%.

Investment approach and strategy:

• Strategy: THD aims to track the performance of the MSCI Thailand 25/50 Index, which represents approximately 85% of the Thai stock market.
• Composition: The ETF invests in a diversified portfolio of approximately 50 Thai companies across various sectors.

Key Points:

• Largest Thailand-focused ETF in the United States
• Tracks the MSCI Thailand 25/50 Index
• Provides exposure to a diverse range of Thai stocks
• Low expense ratio
• Highly liquid

Risks:

• Market risk: The Thai stock market is subject to volatility, which can impact the value of THD.
• Currency risk: The Thai baht is subject to fluctuations against other currencies, which can impact the value of THD for foreign investors.
• Political risk: Political instability in Thailand could negatively impact the stock market.

Who Should Consider Investing:

THD is suitable for investors who:

• Are seeking exposure to the Thai equity market
• Are looking for a diversified investment
• Have a long-term investment horizon
• Are comfortable with moderate risk

Fundamental Rating Based on AI:

8/10

THD receives a strong rating based on its fundamentals. The ETF has a diversified portfolio, a low expense ratio, and a strong track record of performance. However, investors should be aware of the risks associated with investing in emerging markets.

Resources and Disclaimers:

• iShares MSCI Thailand ETF website: https://www.ishares.com/us/products/etf/overview/THD
• MSCI Thailand 25/50 Index: https://www.msci.com/documents/10199/97e899fa-b058-4e4b-b9d0-2e122e62ac4f
• BlackRock website: https://www.blackrock.com/

Disclaimer:

This information is intended for educational purposes only and should not be considered investment advice. Please consult with a financial advisor before making any investment decisions.