Summary
KSA Chart
KSA: Oil Still A Ways To Normalizing
KSA is substantially exposed to financials. Any US cuts at all help the housing market and demand for mortgages. But lending rates should stay high thanks to restricted liquidity. Tighter liquidity comes from the lower oil price, meaning less money sloshing around in the Saudi financial system. We like the hedge that financials in the portfolio provide against the oil exposures, which, while achieving some idiosyncratic performance, are in a lower-demand and price environment.
KSA: Vision 2030 Could Translate To Lucrative Investment Opportunities In Saudi Arabia
Geographic diversification is increasingly important as US and Western markets face high valuations, debt, and structural challenges. Saudi Arabia's ambitious Vision 2030 and vast resources make it a compelling long-term investment story, but execution risks remain. The iShares MSCI Saudi Arabia ETF offers exposure but is heavily weighted in traditional sectors, with high fees and limited diversification into growth industries.
KSA: Saudi Arabia Stocks Sagging In 2025
I rate KSA as a hold due to poor momentum, weak technicals, and only modest earnings growth despite a reasonable P/E ratio. KSA's portfolio is heavily concentrated in financials and materials, with high volatility and a less attractive PEG ratio of 2.4x. The ETF faces bearish technical patterns, with crucial support at $36; a breakdown could trigger further downside toward $26.
iShares MSCI Saudi Arabia ETF (KSA) FAQ
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iShares MSCI Saudi Arabia ETF Profile
| ARCA Exchange | US Country |
Overview
The company specializes in investment services, focusing on tracking the performance of the Saudi Arabian equity market. It operates a fund that aims to invest a minimum of 80% of its assets in securities that form part of an index representative of Saudi Arabia’s large-, mid-, and small-cap equity market segments. This index is adjusted based on free float and considers foreign ownership restrictions, making it a significant gauge for the country's market performance. Due to its investment strategy, the fund is classified as non-diversified, implying a focused investment approach rather than spreading its assets broadly across many securities.
Products and Services
- Equity Market Investment Fund
This product is designed for investors looking to gain exposure to the Saudi Arabian equity market across all capitalization segments. The fund invests primarily in securities that are part of a specifically tailored index measuring the country's market performance, ensuring that investments mirror the economic characteristics of these components. This strategy incorporates foreign ownership limits, providing a comprehensive investment approach within the regulatory framework.
- Non-diversified Fund Strategy
Offering a non-diversified fund strategy, this product is suited for investors seeking concentrated exposure to the Saudi Arabian market rather than a broad, globally diversified portfolio. This approach emphasizes investment in securities that are expected to benefit from the economic growth and market dynamics within Saudi Arabia, potentially leading to higher rewards for those willing to accept the increased risk associated with a focused investment strategy.
Contact Information
