“Within Indonesia, Dividend Growth had its biggest exposure within the Financials sector, which has delivered greater than 40% returns to start off 2014,” said WisdomTree Associate Director of Research Christopher Gannatti in a note published in June.
The risk to further upside for Indonesian stocks could be valuation. Using the cyclically adjusted price/earnings ratio, or CAPE ratio, which evaluates earnings on a 10-year basis, only two markets are more expensive the U.S. Denmark is one, Indonesia is the other.
Market Vectors Indonesia Index ETF
ETF Trends editorial team contributed to this article.