The iShares MSCI Indonesia ETF offers a 10% earnings yield and reasonably low expense ratios considering that it's quite an exotic exposure. The BI is prioritising protecting the rupiah by holding up rates, which is a great set up for financials which dominate the ETF. Net interest margins and loans growth rise for the largest financial holdings.
EIDO: Indonesia Well-Positioned For 2025 Recovery
Indonesia's economy has a bright outlook ahead of it in 2024. The country's Central Bank will likely be able to cut interest rates soon. The equity markets appear attractively priced, considering the favorable growth prospects.
iShares MSCI Indonesia ETF provides access to Indonesian equities, which have strong economic growth and foreign investment. The EIDO ETF is highly concentrated in the top 2 stocks, but offers exposure to Indonesia's booming economy. Consider blending EIDO with VanEck Indonesia Index ETF for a diversified portfolio of Indonesian equities.