iShares MSCI Turkey ETF

TUR

Market cap $206M

The iShares MSCI Turkey ETF (TUR) has outperformed the S&P 500 so far in 2026, most recently benefiting from a ceasefire in neighbouring Iran. Even so, TUR holdings remain notably cheaper than U.S. large caps, offering small double-digit gains as long as downside risks do not materialize. TUR is principally invested in cyclical sectors, amplifying its earnings volatility throughout the economic cycle.

Early 2026 is shaping up as a stock-picker's market, with investors increasingly rewarding countries where inflation is peaking, policy clarity is improving, or growth drivers are strengthening.

ACWX tops SPY early in 2026. Norway, Turkey, South Korea and Japan ETFs hover near 52-week highs on higher oil price, easing inflation and chip rally.

iShares MSCI Turkey ETF is rated 'Hold' due to high sector concentration, weak momentum, and regional risks. TUR's top ten holdings comprise nearly 50% of assets, with over 63% exposure to industrials, financials, and consumer staples. Despite strong performance from select holdings, TUR delivered negative returns YTD and underperformed broader benchmarks.

The iShares MSCI Turkey ETF offers broad exposure to Turkish equities, covering most of the free float-adjusted market cap. Key catalysts for TUR include ongoing monetary easing, benefiting industrials and potentially improving bank profitability as net interest income recovers. Given high valuation and persistent macro risks, I rate TUR as HOLD, awaiting a more attractive entry point despite positive economic momentum.

Single-country funds can reduce overall portfolio risk by acting differently than the S&P 500, offering diversification beyond broad international indexes.

The ratings agency said Friday it lifted the country's long-term foreign currency sovereign-credit ratings and local currency issuer ratings to Ba3 from B1.

iShares MSCI Turkey ETF offers diversified exposure to Turkey's high-growth sectors—industrials, financials, and consumer defensives—positioning it for potential upside amid economic reforms. Risks like currency depreciation, high inflation, and political instability remain significant and could undermine returns for USD-based investors. TUR's lower expense ratio and broader diversification make it more appealing than ITKY, but concentrated holdings and low liquidity add to the risk.

A surprise Israeli strike on Iran sent oil prices soaring. This may prompt sharp reactions in country ETFs such as ENOR (upside) and INDY (downside).

Since President Trump's second term began with the Inauguration on January 20th, the S&P 500 ETF (SPY) is down 16.5% compared to a 6.2% drop for the all world ex US ETF (CWI). It's early, but the rest of the world is solidly beating US markets so far under Trump 2.0. The average country ETF is down exactly 10% in the two and a half trading days since Trump's "Liberation Day," and the only two down less than 5% are India (INDA) and Turkey (TUR).