Financials is the largest sector at 35% of each fund followed by consumer staples and discretionary. Telecom is the other sector of note in the funds at 10% of each. The funds also have nine of their respective top ten holdings in common. IDX charges a slightly lower expense ratio of 0.59% compared to 0.61% for EIDO.
IDXJ has at times diverged dramatically from the large cap funds, especially when it first listed in in early 2012. In 2013 it started out going up 40% versus the 19% gains for IDX and EIDO and in the last three months it has gone down more than the other funds.
Down more than 30% in such a short period of time, the question is should Indonesia be bought? A purchase of any of the Indonesia ETFs at this point would have to be considered an aggressive trade amid the falling knives of emerging markets that will not be suitable for most market participants.
Buying after huge, fast declines that coincide with major news coverage of what is wrong with the country is a contrarian play. Any sort of trade at this point though requires some sort of strategy of either a stop order or buying only a half position with the intention of buying more after a predetermined amount of time or a predetermined price movement.
To paraphrase an old Wall Street saying, there may not quite be blood in the streets but there has been a 35% decline in a market whose economy is still growing at close to 6% with many other economic statistics still trending favorably. Indonesian equities could still go lower but buying after such a large decline is buying low.
At the time of publication the author had no position in any of the stocks mentioned.
This article was written by an independent contributor, separate from TheStreet's regular news coverage.