This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Thailand: An Underdog With Massive Returns

The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.

NEW YORK ( ETF Digest) -- Thailand has had its share of hurdles. First there were the "Red Shirts" protests and riots in 2010 that brought the country to a standstill and turned the streets of Bangkok into a battleground; then there were the catastrophic monsoon floods late last year. But with the political situation improving, if not completely resolved, and positive reports on the country's progress with regards to the flood, the emerging market appears to be a prime candidate for investment opportunities.

A recent IMF mission to Thailand concluded that, in spite of the devastating floods that ravaged the country in the final quarter of 2011, the Thai economy was "poised to make a strong rebound in 2012," though there remains substantial doubt about the world economy. This was encouraging news for investors in the MSCI Thailand Investable Market Index Fund (THD), which was up 3% on that news at the end of February.

The emerging markets in Asia are major contributors to global GDP growth and have attracted growing numbers of investors. The story often understandably centers on the twin giant powerhouses of China and India, which, while exerting massive influence on the world economy, are not growing at the pace they once were. Instead, it's the less-well-known economies (like Thailand) that have provided the best returns.

Indeed, the fund has performed spectacularly since the market bottom of 2009, with returns of as much as 267%.

MSCI Thailand Investable Market Index Fund (THD, in red) has had some of the best returns of any ETF since the market bottom in 2009. Compare THD's performance with the MSCI Emerging Markets Index Fund((EEM), in blue) and the Vanguard Emerging Markets ETF ((VWO), in green)

THD seeks to replicate the performance of the MSCI Thailand Investable Market Index, and is nicely diversified with 85 holdings. Its highest sector allocations are in Financials (a very heavy 33.95%), Energy (24.51%) and Materials (12.10%). The fund has net assets of $703 million and an average daily volume of 236,000, with an expense ratio of 0.59%, fairly reasonable for a foreign market ETF.

It's worth noting that while THD represents an emerging market, Thailand does not figure very prominently in many emerging market funds, with only a 2% allocation in the MSCI Emerging Market Index. This goes a long way toward explaining its divergence in performance from emerging market funds.

Join the conversation on Facebook and Twitter .

>Extra! Extra! Get Your Free Newsletters Here

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
TSLA $147.52 -2.00%
YHOO $26.77 0.04%
AAPL $93.49 -0.22%
FB $101.38 -0.52%
GOOG $679.85 -0.48%


Chart of I:DJI
DOW 15,859.98 +199.80 1.28%
S&P 500 1,852.33 +23.25 1.27%
NASDAQ 4,304.4180 +37.5810 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs