Election Reignites Rally In Indonesian ETFs

July 25, 2014

2. Market Vectors Indonesia ETF (IDX | C-78) AUM: $235 million; YTD return: 30 percent

IDX tracks a market-cap-weighted index of the largest and most liquid Indonesian stocks. Like IDXJ, the fund constituents don’t need to be domiciled in Indonesia as long as they produce at least 50 percent of their revenue there.

Unlike IDXJ, IDX has a relatively strong asset base, and can be fairly traded by investors large and small. The fund currently has a heavy focus on the financial sector, and is a bit more expensive than IDXJ, coming in at 0.57 percent, or $57 for every $10,000 invested.

IDX_YTD_Peformance

1. iShares MSCI Indonesia Investable Market (EIDO | B-99) AUM: $541 million; YTD return: 32 percent

EIDO, which weights financials heavily in its portfolio, tracks a market-cap-weighted index of all investable large-, mid- and small-cap Indonesian companies. The fund’s strongest selling point is its marketlike portfolio, with companies such as automaker and conglomerate Astra International as well as Bank Mandiri in its top holdings.

However, investors should keep in mind that representative exposure in Indonesian equities translates into high concentration risk, specifically in financials. The fund’s expense ratio is 0.61 percent, or $61 for every $10,000 invested.

EIDO_YTD_performance

Charts courtesy of StockCharts.com

 

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