Turkey, a top player in the middle-east politics, has been battling inflation for years. Last year, president Ordogan was re-elected for a 5 year term.The country has been enjoying a continued growth in tourism mainly coming from Arab countries.
One of the main ETFs representing Turkey is TUR. During the past year it had a negative performance of 10% while overall netting a 21% growth over the past 5 years. The mix of assets included in iShares MSCI Turkey ETF are Industrials, basic materials and financial services.
A number of issue might scare investors from allocating funds to this ETF include the following:
- – Devaluation of the LIRA
- – Ongoing issues with the separatist group the PKK
- – Inflation
- – Turkey’s intervention in Syria and Iraq
- – Increasing unemployment among turks
- – Exodus of some turks to other european countries
Despite the above mentioned challenges, Turkey is becoming a growing player in the sales of arms; opening a new market to the country. In addition, Turkey has produced its first prototype of an electric vehicle and has an ambition to mass produce it too compete against other car manufacturers in europe.
With the appointment of a new finance minister that is greatly regarded, this could bring an end to unorthodox economic policies Turkey has employed for years. Could this be a turning point for the country? 2024 could be a rebound year for the TUR ETF.
