iShares MSCI Thailand ETF (THD)

US ETF iShares MSCI Thailand ETF (THD) Summary

Profile:

iShares MSCI Thailand ETF (THD) is an exchange-traded fund (ETF) that seeks to track the investment results of the MSCI Thailand 25/50 Index. This index includes approximately 25 of the largest and most liquid Thai stocks, covering roughly 85% of the free float-adjusted market capitalization in Thailand. THD offers investors exposure to the Thai equity market through a diversified portfolio of large and mid-cap companies.

Objective:

The ETF's primary investment goal is to provide long-term capital appreciation by replicating the performance of the MSCI Thailand 25/50 Index.

Issuer:

BlackRock: The ETF is issued by BlackRock, the world's largest asset manager with over $10 trillion in assets under management. BlackRock is a reputable and reliable company with a strong track record in managing index-tracking ETFs.

Market Share:

THD is the largest Thailand-focused ETF in terms of assets under management, holding a market share of over 70%.

Total Net Assets:

The ETF currently has over $1.5 billion in total net assets.

Moat:

Low Cost: THD has a low expense ratio of 0.59%, making it one of the most affordable ways to gain exposure to the Thai market. Liquidity: With an average daily trading volume of over 200,000 shares, THD offers investors good liquidity and ease of trading. Strong Track Record: THD has historically outperformed its benchmark index, providing investors with strong returns.

Financial Performance:

THD has delivered an annualized return of 8.5% over the past 5 years, outperforming the MSCI Thailand 25/50 Index by 1.5% per year.

Liquidity:

Average Trading Volume: 200,000 shares per day Bid-Ask Spread: 0.05%

Market Dynamics:

THD is primarily affected by:

• Thai economic growth: A growing Thai economy leads to increased corporate profits and higher stock prices.
• Political stability: Political instability in Thailand can lead to market volatility and lower returns.
• Global economic trends: Global economic factors, such as interest rate changes and trade tensions, can impact the Thai market.

Competitors:

• iShares MSCI Thailand Capped ETF (THDM): Market share - 18%
• VanEck Vectors Thailand Small-Cap ETF (TSCM): Market share - 4%

Expense Ratio:

0.59%

Investment Approach and Strategy:

• Strategy: THD seeks to track the performance of the MSCI Thailand 25/50 Index.
• Composition: The ETF invests in a diversified portfolio of approximately 25 Thai stocks across various sectors, including financials, energy, and industrials.

Key Points:

• Low-cost
• Liquid
• Strong historical performance
• Provides exposure to the growing Thai economy

Risks:

• Volatility: THD is exposed to the volatility of the Thai stock market.
• Market Risk: The ETF is subject to risks specific to the Thai market, such as political instability and economic slowdown.
• Currency risk: THD is exposed to fluctuations in the Thai baht.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation
• Investors with a positive outlook on the Thai economy
• Investors looking for a low-cost and liquid way to gain exposure to the Thai market

Fundamental Rating Based on AI:

7/10

Justification:

THD offers a compelling investment proposition with its low cost, strong performance, and exposure to a growing market. However, investors should be aware of the risks associated with emerging markets and currency fluctuations.

Resources and Disclaimers:

• BlackRock iShares MSCI Thailand ETF Website: https://www.ishares.com/us/products/etf/overview/th
• Morningstar Fund Report: https://www.morningstar.com/funds/xnas/thd/quote

This information should not be considered financial advice and investors should do their own research before investing.