Indonesian ETF is a gateway to Asian growth

Article Excerpt

Indonesia’s 280 million citizens make it the world’s fourth-most-populous country and Southeast Asia’s largest economy. The nation’s successful and popular president was the first leader to emerge from outside of Indonesia’s military elite. His government is now focused on keeping the recovery from the pandemic on track. ISHARES MSCI INDONESIA ETF $23.16 (New York symbol EIDO; TSINetwork ETF Rating: Aggressive; Market cap: $495.1 million) tracks the performance of a broad basket of publicly listed Indonesian companies. The ETF holds a diversified portfolio of 82 stocks, but it is heavily concentrated in the top 10 which make up 62% of total assets. Financials (44%), Basic materials (11%), Consumer Defensive (10%), Energy (8%), and Consumer Cyclicals (6%) are the main segments represented in the portfolio. The fund’s top holdings include Bank Central Asia (Financials, 19.0%), Bank Rakyat (Financials, 12.2%), Telkom Indonesia (Communications, 8.4%), Astra International (Consumer Cyclical, 4.8%), Adaro Energy Indonesia (Energy, 3.0%), Charoen Pophand (Consumer Defensive, 2.2%), Kalba Pharma (Healthcare, 2.1%), Merdeka Copper Gold (Basic Materials,…