Turkey ETFs are exchange traded funds which have certain exposure to Turkish economy. Turkish markets can be considered an important part of a diversified portfolio for traders even though the overall economy of the country is less diversified than United States and European countries.
As trends have shown the Turkey’s stock exchange is booming when things are going well in Asia, and the link between large Asian economies and Turkey is obvious. The economy experienced an increase between 2002 and 2008 by 6% and a decrease in 2009 by 5.8%.
There are currently seventeen Turkey ETFs being exposed to the local equity market. iShares ETF are rebounding Turkish stock markets providing the investors to leverage on the quick recovering economy. The Turkey ETFs have been the best performing last year with year to date returns of more than 22%. Currently the Turkey ETF market is being led by iShares MSCI Turkey Investable Market Index Fund (TUR) with more than 20% of its total asset allocation in the country.
Some other well playing ETFs are iShares MSCI Turkey Fund (ITKY) tracking the MSCI Turkey Index and SPDR S&P Emerging Europe ETF (GUR) which does not fully track the ISE but is listed in NYSE and has holding in a few other European countries along with Trukey.
The iShares MSCI Turkey Investable Market Index Fund (TUR) looks for assets (stocks) which results usually matching to the price and produce operations of the MSCI Turkey Investable Market Index. With a net asset value of over $665 million and an expense ratio of 0.61%, TUR is having major holding in financials, almost 50%. The ETF has been the best performer last year.
iShares MCSI Turkey Fund (ITKY) offers an investor with contact to a complete index of Turkish equities. This Turkey ETF invests mostly in physical index securities and is weighted in the free float market capitalization. With an expense ratio of 0.74% the total net asset value is over $250 million.
The SPDR S&P Emerging Europe ETF (GUR) is not focusing totally on the Turkish market but on the successful upcoming European economies. GUR head for in a way that is very similar or strongly linked to match the returns and feature of the overall return functioning of the S&P, Citigroup BMI European Emerging capped index. Since 2008 the European Emerging Index is consisted of companies from Turkey, Poland, Hungary, Russia and Czech Republic. The strong bond of European companies making this Turkey ETF the perfect one for investor to choose.
HSBC has also launched their own Turkey ETF as well- the HSBC MSCI Trukey ETF (HTRY:LSE) has a total expense ratio of 0.6% similar to that of iShares and is available in the London Stock Exchange as well. Turkey is becoming a favorable market to invest in for ETFs.