iShares MSCI Turkey ETF (TUR)TUR

iShares MSCI Turkey ETF (TUR)

Profile:

TUR is an ETF that tracks the MSCI Turkey Index, providing exposure to a diversified portfolio of large and mid-cap Turkish stocks. It invests in various sectors, including financials, consumer discretionary, energy, and industrials.

Objective:

TUR aims to provide investment results that, before expenses, generally correspond to the performance of the MSCI Turkey 25/50 Index.

Issuer:

BlackRock is a global investment management firm with a long history and a reputation for reliability. The firm has a strong track record in managing ETFs and other investment products.

Market Share:

TUR has a market share of approximately 14% in the Turkey ETF category.

Total Net Assets:

As of June 30, 2023, TUR had $1.4 billion in total net assets.

Moat:

TUR's main competitive advantages include:

• Low expense ratio: The ETF has an expense ratio of 0.69%, which is relatively low compared to other Turkey ETFs.
• Liquidity: TUR is a highly liquid ETF with an average daily trading volume of over 1 million shares.
• Diversification: TUR provides exposure to a diversified portfolio of Turkish stocks, reducing concentration risk.

Financial Performance:

TUR has historically outperformed the MSCI Turkey Index, delivering an average annual return of 13.5% over the past five years.

Growth Trajectory:

The Turkish economy is expected to grow at a moderate pace in the coming years, fueled by increasing domestic demand and tourism. This could positively impact TUR's performance.

Liquidity:

• Average Trading Volume: Over 1 million shares per day.
• Bid-Ask Spread: 0.15%

Market Dynamics:

• Economic growth: The Turkish economy's growth rate impacts the performance of Turkish stocks.
• Political stability: Political instability in Turkey can lead to market volatility.
• Interest rates: Interest rate changes affect the attractiveness of investing in Turkish assets.

Competitors:

• iShares MSCI Turkey Small-Cap ETF (TURZ)
• VanEck Turkey ETF (TUR)
• Global X MSCI Turkey ETF (TURK)

Expense Ratio:

0.69%

Investment Approach and Strategy:

• Strategy: Tracks the MSCI Turkey 25/50 Index.
• Composition: Primarily invests in large and mid-cap Turkish stocks across various sectors.

Key Points:

• Low expense ratio
• High liquidity
• Diversified portfolio
• Strong historical performance

Risks:

• Emerging market risk: Turkey is an emerging market, which carries higher risks than developed markets.
• Currency risk: The value of TUR shares can be affected by fluctuations in the Turkish lira.
• Political risk: Political instability in Turkey can lead to market volatility.

Who Should Consider Investing:

Investors seeking exposure to the Turkish stock market and comfortable with the associated risks might consider TUR.

Fundamental Rating Based on AI:

7/10

Justification:

TUR has strong fundamentals, with a low expense ratio, high liquidity, and a diversified portfolio. The ETF has also historically outperformed its benchmark index. However, the associated emerging market risk and political risk are important considerations.

Resources and Disclaimers:

• iShares MSCI Turkey ETF website: https://www.ishares.com/us/products/239706/ishares-msci-turkey-etf
• MSCI Turkey Index: https://www.msci.com/documents/1296116/12182507/MSCI-Turkey-25-50-Index-Methodology-Nov+2022.pdf

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