Last year, Turkish stocks and TUR tumbled following a failed coup. Turkish markets plummeted on concerns of the implications of the ensuing political turbulence after a failed coup d’etat attempt from the military branch.

In August, Turkey’s central bank lowered interest rates by 25 basis points to 8.75% and said it stands ready to provide liquidity to the country’s banks, if needed, an important factor considering TUR’s weight to financial services stocks is almost 44%, or more than triple the ETF’s second-largest sector allocation.

Importantly, Turkish stocks are not expensive and that could open the door for more upside.

“In equities, the market recovered in January, but price/earnings ratios and price/book ratios are still 10% and 20% below historical averages, respectively, in a context where emerging market equities are trading in line with long-term valuations. Turkey is a cheap market with relatively high earnings-per-share growth. Investors cut Turkey overweight in July [after the attempted coup]and did not add back. We remain overweight Turkish equities,” according to the Bank of America Merrill Lynch note seen in Barron’s.

For more stories on the lone Turkey ETF, visit our Turkey category.