iShares MSCI Thailand ETF

THD

Market cap $361M

When it comes to broad international equities exposure, the sum of the parts is traditionally greater than the whole. Today, however, single-country exposure is also proving that individual parts can deliver a whole lot of performance.

The iShares MSCI Thailand ETF which covers 82 Thai stocks has delivered nearly 38% total returns over the past year, outperforming its other ASEAN peers in a big way. THD's heightened exposure to Delta Electronics, an AI hardware play, has worked well, but it also makes it vulnerable to some profit booking, more so due to steep valuations. Thailand's macro outlook is weakening, with GDP growth expected to dip below 2% for the first time in 3 years, while the prospects of the THB don't look great either.

The Bank of Thailand kept interest rates on hold while it reassesses the economic impact of the war in the Middle East as the U.S. and Iran work on a lasting peace deal.

Asian currencies consolidated against the dollar before first decision by a FOMC led by Chairman Kevin Warsh later.

The retail surge is driven by rapid digitalization, a young demographic and increasing disposable income. Young investors are embracing both traditional and alternative assets.

CNBC's Dan Murphy delves into the Middle East's investment flows and provide insights on the global energy hub and the vast amounts of capital originating from the region on Access Middle East (12:00 – 13:00 SIN/HK). Please note this livestream is only available in Europe and India.

iShares MSCI Thailand ETF offers broad exposure to Thailand's stock market, but has a history of poor performance. Despite ongoing political volatility, THD's valuation appears attractive for contrarian investors, with recent market dips becoming shallower. Uncertainty around key economic policies is receding, with clearer paths emerging for initiatives like the digital wallet and visa reforms.

Countries around the world have scrambled to cope with the fallout of the energy shock from the Iran war. This comes as the Iran war stretches into its third week.

ASEAN's dividend opportunity is underpinned by diverse and evolving market characteristics. The FTSE ASEAN Index, which captures the large- and mid-cap companies listed in the five ASEAN markets - Singapore, Malaysia, Indonesia, Thailand and Philippines - has delivered a 10-year average dividend yield of 3.57%. Across multiple market cycles over the past 25 years, a back-test of the FTSE ASEAN ex REITs Target Dividend Index's strategy showed notable resilience during market downturns and lower overall volatility compared with the broader ASEAN market.

iShares MSCI Thailand ETF has delivered a 17% return since August 2024, driven by macro improvements. Thailand's 2026 GDP growth is projected at 2%, lagging the regional peer average of over 4%.