Thailand ETF

Thailand is a fairly well-developed country. Both exports and tourism are important pillars of its national economy. Large scale growth however is a thing from the past. The country also suffers from a multitude of problems.

Due to political unrest and several coups d’etats the tourism sector had to deal with severe blows. Another concern is its relative strong growth in wealth which made Thailand more expensive than neighboring countries which is causing problems for the export sector.

Domestic consumption is under pressure by a boom in personal loans with high interest rates. That all being said it’s not all doom and gloom in Thailand, on the contrary. There still are many opportunities for growth.

The major concern remains the unstable political situation. This hampers the influx of tourists and it disheartens investors. The key to success for Thailand obviously is in the hand of politicians.

If the internal political system will come to a stable situation then Thailand is set for another period of intensified growth and it will most certainly mark an entry point for investors and for me personally.

Getting into a market just short after a political stabilization always has proved an ideal moment for entering the market. But will this political stabilization come to fruit? We will just have to wait and see. 

Lyxor Thailand (SET50 NET TR) UCITS ETF

This Lyxor ETF is tracking the SET50 index which contains the 50 largest publicly traded companies in Thailand. The financial sector plays a dominant role in this index and subsequent Thailand ETF with a share of 25%.

Telecommunications and Energy are good for a 15% share each. Consumer goods and Industry only take up 10% each. All in all a good spread which perfectly mirrors the Thailand economy.

This particular Thailand ETF from Lyxor tracks the SET 50 NET TR index. NET TR indicates that this is a reinvesting index which means that no dividends will be paid out.

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