A Closer Look At The Lone Thailand-Focused ETF (THD)

Last week, we profiled Vietnam and the lone tracking ETF in the segment VNM (VanEck Vectors Vietnam, Expense Ratio 0.66%, $301 million in AUM).

Today we profile fellow Southeast Asian country Thailand, which geographically is west of Vietnam with Laos and Cambodia situated in between the two countries. Like Vietnam, Thailand is represented by only one listed ETF product in the U.S. at the moment, and this fund is the $377 million THD (iShares MSCI Thailand Capped, Expense Ratio 0.63%) which debuted back in 2008.

Unlike Vietnam, the underlying Thai market is much more diversified in comparison with one hundred twenty-nine individual names, compared to Vietnam’s twenty-six. When we look at how THD is invested in terms of sector allocations we see the following breakdown: 21% weighting to Financials, 17% allocation to Energy, 12% to Industrials, 11% to Consumer Staples, 10% to Basic Materials, and lesser weightings to other industry sectors.

From an individual name standpoint, THD holds ordinary shares of companies that are likely not at all known to most investors and even portfolio managers, since the local Thai market is not exactly popular nor is it readily accessible. Top weightings currently appear as follows: 1) PTT Non-Voting DR PCL (9.28%), 2) CP All Non-Voting DR PCL (6.97%), 3) Siam Commercial Bank Non-Voting DR (5.82%), 4) Kasikornbank PCL F (5.32%), 5) Airports of Thailand Non-Voting DR (5.26%), 6) Advanced Info Service Non-Voting D (4.51%), 7) PTT Global Chemical Non Voting DR (3.63%). 8) Siam Cement PCL F (3.43%), 9) PTT Exploration and Production (2.79%), 10) Kasikornbank Public Non-Voting DR (2.50%).

At present levels, THD is within about 1.2% of its 52-week highs, and fund flows in the product have been rather uneventful in 2017, with about $17 million leaving via redemption flows.

Interestingly, this piece may be timely, because the ASEAN (The Association of Southeast Asian Nations) is actually celebrating its fiftieth birthday this month and on the whole, many of the member countries sport some of the most impressive growth rates in the world in terms of their local economies. Thailand was one of the five founding members of ASEAN along with Indonesia, Malaysia, the Philippines, and Singapore.


The iShares MSCI Thailand Capped ETF (NYSE:THD) was trading at $79.14 per share on Monday afternoon, down $0.19 (-0.24%). Year-to-date, THD has gained 11.69%, versus a 11.81% rise in the benchmark S&P 500 index during the same period.

THD currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #21 of 75 ETFs in the Asia Pacific Equities Ex-China ETFs category.

Disclaimer: The content of this article is excerpted from a daily newsletter from Street One Financial. While ETF Daily News may edit the contents and add a relevant title to the piece, the author, Paul Weisbruch, does not endorse or recommend any issuer or security mentioned herein.

About the Author: Paul Weisbruch

paul-weisbruchPaul Weisbruch is the VP of ETF/Options Sales and Trading at Street One Financial. Prior to joining the team at Street One, Paul served as the Director of RIA and Institutional ETF Sales at RevenueShares ETFs from December 2007 until November of 2009. Before RevenueShares, Paul was employed by Susquehanna International Group from 2000 until 2007 serving in roles including OTC/NYSE Institutional Block Trading, Nasdaq/OTC Market Making, ETF/Derivatives Intelligence and Strategy, Algorithmic Trading, as well as acting as the PHLX Floor Specialist in the ETFs, SPY and DIA.Paul has been actively involved in the ETF space from both a product and trading standpoint since 2000. Additionally, Paul has well forged relationships with national RIAs, institutional pension fund managers and consultants, mutual fund and hedge fund managers, and also the ETF media. Co-authoring the “S1F ETF Daily” since 2009, the daily piece has become a must for many portfolio managers in the ETF space, with segments regularly appearing in the likes of Barron’s, WSJ, and ETFTrends.com for instance.

He holds his Series 4 (Registered Options Principal), 6, 7, 55 (Equity Trader), 63, and 65 licenses. He graduated from the University of Pittsburgh (B.S. – Economics), graduating magna cum laude, and has an MBA from Villanova University.