It is a passive single-country ETF that tracks an index of large- and mid-cap stocks in the Thai stock market. It offers exposure to leading Thai companies in financials, energy, consumer goods and other sectors.

It suits investors who want a concentrated position in the Thai market and are willing to accept the volatility of a single emerging-market country as well as currency risk.

It is an ETF managed by iShares using a passive (index-tracking) approach.

The fund tracks the MSCI Thailand Index, which is composed of large- and mid-cap stocks in the Thai stock market. It spreads its holdings across leading Thai companies in financials, energy, consumer goods and other sectors in proportion to market capitalization, and its focus on a single country means it directly reflects the trajectory of the Thai economy and Thai companies.

• Single-country exposure to Thailand
• Diversification across leading companies

Assets under management (AUM) stand at $384.9M, and the total expense ratio is 0.59% per year.

Compared with broad emerging-market ETFs or other single-country ETFs, the main points of comparison are its Thailand concentration and its holdings composition.

Thai equities are driven by emerging Asian economic conditions, global risk appetite, tourism and domestic demand, and currency strength or weakness. They tend to strengthen when risk appetite improves and domestic demand recovers, and to weaken when investors turn risk-averse. As a single emerging-market country, volatility tends to be high.

Fund flows into and out of Thai equities diverge depending on the emerging Asia economic outlook, currency movements, and tourism and domestic demand, and money sometimes shifts into related products when interest in emerging Asia rises. It is also worth noting that performance varies with the baht exchange rate and policy changes.

Exposure to leading Thai companies is a strength, while single-country concentration, currency movements and emerging-market risk are considerations.

For diversification across emerging markets, direct substitutes include EEM and VWO, and for exposure to neighboring Malaysia, products such as EWM are also worth comparing. The three products shown in the table, EWU, EWG and EWC, invest in the United Kingdom, Germany and Canada respectively, so their country exposure differs. This ETF is differentiated by its narrow exposure to Thailand alone.

Here are the points to review before investing in THD. Exposure to leading Thai companies is attractive, but single-country concentration, currency movements and emerging-market risk should be checked in advance. It is also a good idea to compare it with broad emerging-market products and other single-country products.

Thai political and policy changes, a slowdown in emerging Asian economies and the baht exchange rate are the main variables for short-term performance, and because of its single emerging-market country concentration, volatility can be greater than for diversified products. Declines can be steep during risk-averse periods.

It is a suitable candidate for investors who want a concentrated position in the Thai market. For diversification across emerging markets, consider products such as EEM and VWO, and if you want concentrated exposure to Thailand, it is advisable to compare this product alongside them before choosing.