This year, THD has also contended with efforts to stymie a massive Thai infrastructure spending and fears the country’s equity and debt markets could be hampered by Fed tapering. In September, Goldman Sachs cut its rating on Thai equities to marketweight from overweight. [Thailand ETF’s Tale of Woe]
The benchmark SET Index has violated support at 1,400 and a dip below 1,350 could lead to increase pressure on THD. In addition to political problems, Thailand is also dealing with bad loans and some highly leveraged financial institutions. Not good news for an ETF with a 36.2% weight to the financial services sector.
Market historians may remember the 2010 Red Shirt/Yellow Shirt protests that stung THD, but even then, the worst decline the ETF endured was 11.2%. A year later, the ETF was higher by over 50%.
iShares MSCI Thailand Capped ETF
ETF Trends editorial team contributed to this post.