- Turkish assets are trading at exceptionally cheap levels, with a combination of cheap local equities and currency weakness making the iShares MSCI Turkey ETF a worthwhile risk reward.
- The MSCI Turkey trades at a 61% discount to the MSCI Emerging Markets index and a 72% discount to the MSCI World index on a forward PE basis.
- The Turkish lira is also deeply undervalued and the recent spike in bond yields has greatly increased real yields relative to the U.S.
- The TUR's expense ratio of 0.59% is low in the context of the ETF's historical volatility and is more than offset by the dividend yield of 0.96%. The dividend yield also looks set to rise considerably in line with the forward estimates for the MSCI Turkey index, which point to dividend yields in excess of 6%.
For further details see:
TUR: Too Cheap To Ignore