ETF Trends
ETF Trends

After a the dip and steady rise in Indonesia’s markets, some believe it may be safe to tentatively try out one of the world’s best-performing markets of 2010 by investing into the region through the Indonesia exchange traded fund (ETF).

International expert Nicholas Vardy remarks that “with sentiment improving slightly in global markets, we now recommends that you dip your toe back into global stock markets,” writes Steven Halpern for BloggingStocks. [Indonesia ETF: Is ‘Growth in the Pocket’?.]

Factors that favor Indonesia’s continued growth include:

  • Indonesia, the world’s fourth-largest country with a population of 225 million, hosts a young-and-growing population, with the nation’s capital anticipated to be the largest city in the world within 20 years, adds Vardy. [Creative Ways to Get Emerging Market Exposure with ETFs.]
  • Indonesia also holds large reserves of natural resources.
  • The domestic consumption makes up two-thirds of the GDP, which has cushioned the economy from any shifts in export demand – exports make up 26% of GDP. [Why Emerging Market Banks Are Solid.]
  • The Central Bank has kept rates at a record low of 6.5% as inflation remains low.
  • The International Monetary Fund (IMF) projects Indonesia’s economy will expand 6% this year. The Chairman of Indonesia’s Investment Coordinating Board estimates growth of between 6% to 7%.

For more information on Indonesia, visit our Indonesia category. Visit our ETF Resume page for Indonesia to see the fund’s prospectus, tear sheet, composition, holdings and much more.

  • Market Vectors Indonesia Index ETF (NYSEArca: IDX)

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.