Bank of America Corp.’s Merrill Lynch also recommends taking a look at Turkish industrial companies with strong earnings and growth prospects.
“Generally investors should be aware that the MSCI Turkey Index is not a good proxy of the Turkish economy. The index is heavily biased towards financials (around 43%), whereas the sector represents less than 5% of the country’s GDP. The TUR ETF provides diversification benefits when added to an equity strategy as it offers the following correlations vs: EEM (0.7) and SPY (0.47),” according to Emerging Equity.
For the daring bargain hunter, Emerging Equity recommends TUR “as a satellite position within a global world or a global emerging markets or a more local EM strategy strategy. Investors should always check the allocation of the country within their underlying benchmark in order to play it on a tactical basis.”
iShares MSCI Turkey ETF
