THD: Thai Equities Are Worth Avoiding For Now

Aug. 08, 2021 10:55 PM ETiShares MSCI Thailand ETF (THD)THD5 Comments
Hedge Insider
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Summary

  • Thai equities have fallen year-to-date in spite of many other geographic equity markets rising.
  • I think this fall is justified on the basis of simple valuation, and further downside could be in store.
  • The Thai economy has also been hard hit relative to other countries due to COVID-19 and its dependence on tourism.
  • Until global tourism picks up significantly and sustainably, it will be tough for THD to bounce back.
Cliffs by the Railay beach, Krabi province, Thailand
lechatnoir/E+ via Getty Images

iShares MSCI Thailand Capped ETF (NYSEARCA:THD) is an exchange-traded fund that enables U.S. investors to get direct exposure to Thai equities. The fund had 129 holdings as of August 6, 2021, which is actually surprisingly high given that Thailand's equity market is not

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