EIDO - EIDO: Indonesian Stocks See Green Shoots After A Lost Decade
2024-03-21 10:00:20 ET
Summary
- iShares MSCI Indonesia ETF offers exposure to Indonesian companies, with heavy concentration in the financial sector.
- Limited alternative options for investing in Indonesian equities exist.
- Indonesia's size, growth, and positive structural factors make it worth considering for investment.
iShares MSCI Indonesia ETF Overview
The iShares MSCI Indonesia ETF ( EIDO ) aim is to offer investors exposure to a broad range of companies in Indonesia. It is worth noting however, according to its latest factsheet , that concentration is heavy in financials. More than half the fund is allocated to this sector, with nearly all of this spread across only three large bank holdings.
There does not appear to be too may obvious alternative ways to get exposure to Indonesian equities. Other ETFs lack scale, closed end funds are not available, and not all that practical for most investors to allocate time to trying to pick Indonesian ADRs. Many brokers offering access to global stock exchanges do not cover Indonesia. I will also assume readers here don't want to try to travel there to open an account directly....
EIDO: Indonesian Stocks See Green Shoots After A Lost Decade