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Thailand ETF (THD) Hits a New 52-Week High

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For investors looking for momentum, iShares MSCI Thailand Capped ETF (THD - Free Report) is probably on your radar now. The fund just hit a 52-week high. Shares of THD are up roughly 20.71% from their 52-week low price of $65.27/share.


But could more gains be ahead for this ETF? Let’s take a quick look at the fund and the near-term outlook to get a better idea on where it might be headed:


THD in Focus


THD focuses on providing exposure to Thai equities, specifically the companies based in the nation. Financials, Energy, and Consumer Staples are the top three sectors, with 26.86%, 17.28%, and 10.48% allocation, respectively (as on April 11, 2017). It charges 63 basis points in fees per year and has top holdings in PTT PCL, CP All PCL, and Siam Commercial Bank PCL with over 22.5% allocation to them (see all Broad Emerging Market ETFs here).


Why the Move?


Lately, Thailand’s economy has been gaining a lot of traction, as investors look at emerging market investments amid uncertainty over President Trump’s protectionist agenda. Inflows into Thailand amounted to $3.42 billion this year, with $640 million coming in just in the March 17-April 10, 2017 window. This drove the baht to its highest level since mid-2015. Current account surplus was $5.73 billion in February 2017, while foreign exchange reserves rose 5.2% to $181 billion. This has helped the SET Index to pick up a rising trend. It closed on 1,589.50 on April 12, 2017.


More Gains Ahead?


Currently, THD has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. So it is hard to get a handle on its future returns one way or another. However, it has a weighted alpha of 18 and a low 14-day volatility of 7.29%.  So, there is definitely a promising outlook ahead for those who want to ride this surging ETF a little further.


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