Investors looking to gain exposure to Turkey’s fast-growing markets need not look any further. The iShares exchange traded fund (ETF) provides an investor with a pure play on the rebounding Turkish stock markets and a quickly recovering emerging economy.
Turkey might be one of the most promising emerging markets around these days:
- According to Doug Fabian for The Money Show, the iShares MSCI Turkey Index (NYSEArca: TUR) surged 98% in 2009 as the Central Bank reduced rates to record lows so as to fuel growth and the Turkish stock market became one of the world’s top performers, writes David Bettencourt for Benzinga. [Why Turkey ETF is Worth a Gander.]
- After gaining control over its problems with inflation, Turkey’s economy grew by an average of almost 6% between 2002 and 2008. However, the financial fiasco pulled the economy back 5.8% for 2009. [Coup Could Derail Turkey ETF.]
- Turkey is now expected to expand 3.5% to 4% this year. Standard & Poor’s ratings raised Turkey’s long-term foreign currency and local currency sovereign credit ratings to BB and BB+, respectively. [8 Top ETFs Since the Low.]
- Turkey boasts something that resembles a recovery in its real estate sector. Home sales improved 25% last year from a year earlier, reports Property Showrooms.
- Tourism may also be poised for a breakout. The country expects this year to break records, and several airlines are stepping up the number of flights that head into the area.
For more information on Turkey, visit our Turkey category.
iShares MSCI Turkey Index (NYSEArca: TUR). TUR tries to reflect the performance of the MSCI Turkey Investable Market Index. The fund invests at least 90% of assets in securities of the underlying index and in ADRs based on securities of the benchmark. The benchmark index is designed to measure broad-based equity market performance in Turkey.
The top sectors include financials, 50.2%; industrials, 11.8%; and telecommunications, 11.3%.
Max Chen contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.