EIDO was down more than 3% on Wednesday, one day after trading volume spiked to more than 4 million shares, the second-highest in the ETF’s history.

Morningstar analyst Patricia Oey said the fund is quite risky, due in part to Indonesia’s volatile currency.

“More recently, slowing commodity demand, particularly from China, is weighing on Indonesia’s current account. And during periods of high global market volatility, investors tend to quickly pull out of riskier assets. During such periods, investors in this fund likely will suffer from a combination of falling asset prices as well as a falling rupiah,” she said in a report on EIDO.

“Foreign investors poured into Indonesia’s equity and debt markets over the past two years,” Oey wrote.” A sudden reversal in flow could negatively affect the local markets and the value of the Indonesian rupiah.”

Other ETFs tracking this market include Market Vectors Indonesia Index ETF (NYSEArca: IDX) and Market Vectors Indonesia Small-Cap ETF (NYSEArca: IDXJ).

iShares MSCI Indonesia

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