iShares MSCI Kuwait ETF

KWT

Market cap $71.5M

Crude oil stocks stand to gain from surging prices and supply chain disruptions, offering investors defensive, short-term tactical buying opportunities. The goal of defensive trading is to preserve capital and mitigate risk until more favorable market conditions return. Explore the ‘Strong Buy' recommendations in this article, which are up an average +60% YTD, trade at a discount, and offer strong fundamentals that may benefit from the crude oil trade.

Through ETFs, iShares has long offered exposure to equity markets like Canada and Italy. Soon, the firm will provide access to an even larger market.

The iShares MSCI Kuwait ETF which has a relatively high expense ratio and limited stability, seeks to mitigate those flaws with a near 6% yield. Kuwait's oil-based activities are expected to see a meaningful pickup from H2-25 while lower inflation readings are expected to result in a more favorable interest rate environment. Kuwaiti banks, accounting for 66% of this portfolio, will benefit from superior GDP growth and credit expansion, supported by lower policy rates and a potential government-induced infrastructure thrust.