However, Vecht cautioned that the rate hike could slow the economy over the short-term.

This is also a busy earnings week for Turkish banks, with Turkiye Garanti Bankasi AS (GARAN), the largest lender by market value, reporting fourth-quarter results Thursday.  Turkiye Garanti Bankasi is the largest holding in TUR, accounting for 10.4% of the ETF’s holdings.

iShares MSCI Turkey ETF

For more information on Turkey, visit our Turkey category.

Max Chen contributed to this article.