Southeast Asian markets, particularly Indonesia, have struggled, but EIDO is a "BUY" due to a weakening dollar, falling valuations, and potential growth bottoming. EIDO's expense ratio is lower than IDX, and it offers a purer play on Indonesian equities, with financials making up nearly half its holdings. Global trade tensions and a declining US dollar could benefit emerging markets like Indonesia, making it well-placed for short- to medium-term gains.

The iShares MSCI Indonesia ETF offers a 10% earnings yield and reasonably low expense ratios considering that it's quite an exotic exposure. The BI is prioritising protecting the rupiah by holding up rates, which is a great set up for financials which dominate the ETF. Net interest margins and loans growth rise for the largest financial holdings.

Our emerging markets watchlist tracks nine indexes from emerging economies around the world. Emerging markets are countries with economies in the process of rapid growth and industrialization.

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EIDO: Indonesia Well-Positioned For 2025 Recovery

US equities have outperformed the rest of the world for a long time now. While the US is up 58% on a total return basis during the current bull market, the rest of the world is up 13.5 percentage points less at +44.5%. Looking at the international dividend ETF over a longer time frame, over the last five years, it's up 20.6% in price and more than double that on a total return basis.

Indonesia's economy has a bright outlook ahead of it in 2024. The country's Central Bank will likely be able to cut interest rates soon. The equity markets appear attractively priced, considering the favorable growth prospects.

iShares MSCI Indonesia ETF provides access to Indonesian equities, which have strong economic growth and foreign investment. The EIDO ETF is highly concentrated in the top 2 stocks, but offers exposure to Indonesia's booming economy. Consider blending EIDO with VanEck Indonesia Index ETF for a diversified portfolio of Indonesian equities.

iShares MSCI Indonesia ETF offers exposure to Indonesian companies, with heavy concentration in the financial sector. Limited alternative options for investing in Indonesian equities exist. Indonesia's size, growth, and positive structural factors make it worth considering for investment.

Indonesia will go the polls on Wednesday to elect a new president to replace Joko Widodo. The vote's importance should not be underestimated.