Interest rate cuts usually take a few months to bear fruit for economies and THD certainly is not the first global ETF to struggle immediately following such an announcement. In fact, several marquee emerging markets ETFs have recently disappointed in the days and weeks following interest rate reductions with the iShares MSCI South Korea Capped Index Fund (NYSEArca: EWY) being a prime example. [Rate Cuts Not Helping These ETFs…Yet]
If there is good news for THD investors it is that the Bank of Thailand has room for further rate paring because inflation there is benign. April’s headline inflation number fell to 2.4% on a year-over-year basis while targeted core inflation was 1.2%, well within the central bank’s desired range of 0.5%-3%, according to Marc Chandler for Investing.com.
iShares MSCI Thailand
ETF Trends editorial team contributed to this report.