Thai PM urged to seek extradition of Tak Bai Massacre suspect from Japan at ASEAN Summits

[thaibutty]

ETF's - Exchange Traded Funds, have been a popular choice with many investors in more mature stock markets. Tracking whole indices there is less risk involved, as with buying individual shares. More aggressive investors are also investing in Emerging Market ETF's...

The SET offers ETF's as well, for the SET, SET50 and SET100 and MAI. Does anyone already have experience with the Thai ETF's are they a good way of investing in Thailand or is it better to choose individual stocks?

Looking at the Dow and S&P one understands why ETF's are interesting as these have had the tendency to rise over the long-term. The SET however, is way below it's historic high, but has been on an uptrend this year. So an ETF might be a good way of profiting from the rise, the SET can be quite volatile and not very interesting over the long-term.

If you have any input or advice, would be great and I guess some other novice investors might be interested in that as well.

[lannarebirth]

On the NYSE there are Thai ETF's. There is " TF " and " TTF ", at least one of which is actually a closed end fund. Best bought when trading at a discount to NAV. Mind the currency difference.

[thaibutty]

On the NYSE there are Thai ETF's. There is " TF " and " TTF ", at least one of which is actually a closed end fund. Best bought when trading at a discount to NAV. Mind the currency difference.

Thank's for the reply. The NYSE fund is a closed end fund TTF, and there is an i-shares Thailand ETF (AMEX:THD) Both can only be traded with an international brokerage.

Currently I would like to purchase them locally, through a Thai broker, because of the currency difference.

Any info's on the ETF's that can be bought in THailand?

[cocopops]

On the NYSE there are Thai ETF's. There is " TF " and " TTF ", at least one of which is actually a closed end fund. Best bought when trading at a discount to NAV. Mind the currency difference.

Thank's for the reply. The NYSE fund is a closed end fund TTF, and there is an i-shares Thailand ETF (AMEX:THD) Both can only be traded with an international brokerage.

Currently I would like to purchase them locally, through a Thai broker, because of the currency difference.

Any info's on the ETF's that can be bought in THailand?

Edited July 28, 2010 by cocopops

[thrilled]

The only thai ETF that i'm familiar with,trades on the new york stock exchange symbol "THD".

[thaibutty]

So none of the investors, who are investing in the SET are actually using the ETF which can be bought with a Thai broker?

[sleepyjohn]

So none of the investors, who are investing in the SET are actually using the ETF which can be bought with a Thai broker?

You may find the spreads high, they are for many Thai stocks (I'd be interested to know if anyone can inform us).

TTF etc are of course $ denominated but you are actually exposed to baht which may be useful.

A downside may or may not be TTF THD are not tradeable in real (Thai) time. They will tend to move in steps dependent on the Thai day before.

[fletchsmile]

While ETFs and index funds have their place in mature markets as you say for some people, personally I don't like them in smaller and developing markets like Thailand. My reasoning being that as the markets are less liquid, narrower and there are generally fewer quality companies, why be linked in with companies that are obviously dogs. If you took FTSE100 or S&P500 etc, most are quality companies with a wide variety, and it is more difficult to spot the dogs. Thailand is much narrower. The good fund managers here therefore have a much easier time sorting the wheat from the chaff which suggests to be active management approach is better. My own investments bear this out. Although trackers/ETFs have lower charges they have not done as well as my investments generating returns.

Also you should check exactly how any index tracker fund or ETF is run. Do they actually invest in the underlying shares, or do they use derivatives? This is important also in the context of what happens to dividends. While the SET may appear flat over the last 10 years, if you factor in dividends returns have been much nicer.

[thaibutty]

While ETFs and index funds have their place in mature markets as you say for some people, personally I don't like them in smaller and developing markets like Thailand. My reasoning being that as the markets are less liquid, narrower and there are generally fewer quality companies, why be linked in with companies that are obviously dogs. If you took FTSE100 or S&P500 etc, most are quality companies with a wide variety, and it is more difficult to spot the dogs. Thailand is much narrower. The good fund managers here therefore have a much easier time sorting the wheat from the chaff which suggests to be active management approach is better. My own investments bear this out. Although trackers/ETFs have lower charges they have not done as well as my investments generating returns.

Also you should check exactly how any index tracker fund or ETF is run. Do they actually invest in the underlying shares, or do they use derivatives? This is important also in the context of what happens to dividends. While the SET may appear flat over the last 10 years, if you factor in dividends returns have been much nicer.

Thank's I guess this is a solid explanation why not to buy an ETF in Thailand. Will focus on individual Thai stocks, instead.