How to invest in Turkey using ETFs
How do I invest in Turkish stocks?
The easiest way to invest in the whole Turkish stock market is to invest in a broad market index. This can be done at low cost by using ETFs.
On the Turkish stock market you find 2 indices, which are tracked by ETFs.
Alternatively, you may consider indices on Emerging Markets of the EMEA region (Europe, Middle East and Africa) or Europe. However, Turkey is weighted only with less than 25% in these indices.
Performance of Turkish stocks (MSCI Turkey)
Indices in comparison
The best indices for ETFs on Turkey
For an investment in the Turkish stock market, 2 indices tracked by 4 ETFs are available. On the Dow Jones Turkey Titans 20 index there is 1 ETF. On the MSCI Turkey index there are 3 ETFs. The total expense ratio (TER) of ETFs on these indices is between 0.60% p.a. and 0.74% p.a..
| Index | Investment focus | Number of ETFs | Number of constituents | Short description |
|---|---|---|---|---|
Dow Jones Turkey Titans 20 |
Turkey | 1 ETF | 20 |
The Dow Jones Turkey Titans 20 (total return) index tracks the 20 largest Turkish stocks.
Index factsheet |
MSCI Turkey |
Turkey | 3 ETFs | 24 (31/10/16) |
The MSCI Turkey index tracks Turkish large and mid cap stocks.
Index factsheet |
| ETF ISIN |
Fund size in m EUR |
TER in % |
Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| iShares MSCI Turkey UCITS ETFIE00B1FZS574 | 200 | 0.74% p.a. | Distributing | Ireland | Full replication | |
| Lyxor Turkey (DJ Turkey Titans 20) UCITS ETF EURFR0010326256 | 122 | 0.65% p.a. | Accumulating | France | Unfunded swap | |
| HSBC MSCI Turkey UCITS ETF USDIE00B5BRQB73 | 6 | 0.60% p.a. | Distributing | Ireland | Full replication | |
| HSBC MSCI Turkey UCITS ETF USDDE000A1H49V6 | 6 | 0.60% p.a. | Distributing | Ireland | Full replication |
| Index | 1 month in % |
3 months in % |
6 months in % |
1 year in % |
3 years in % |
|
|---|---|---|---|---|---|---|
| MSCI Turkey | 0.28% | 9.71% | 22.93% | 4.56% | -9.25% | |
| Dow Jones Turkey Titans 20 | -0.76% | 9.61% | 22.67% | 5.63% | -8.61% |
| Index | 2017 in % |
2016 in % |
2015 in % |
2014 in % |
2013 in % |
|
|---|---|---|---|---|---|---|
| Dow Jones Turkey Titans 20 | 18.15% | -3.60% | -25.56% | 34.47% | -31.13% | |
| MSCI Turkey | 19.14% | -5.96% | -24.11% | 33.82% | -30.00% |
Source: justETF.com; As of 31/05/17; Calculations in EUR based on the largest ETF of the respective index.
The best Turkey ETFs
by 1 year return
| 1 | Lyxor Turkey (DJ Turkey Titans 20) UCITS ETF EUR | 5.63% |
| 2 | iShares MSCI Turkey UCITS ETF | 4.56% |
| 3 | HSBC MSCI Turkey UCITS ETF USD | 4.35% |
The cheapest Turkey ETFs
by total expense ratio (TER)
| 1 | HSBC MSCI Turkey UCITS ETF USD | 0.60% p.a. |
| 2 | HSBC MSCI Turkey UCITS ETF USD | 0.60% p.a. |
| 3 | Lyxor Turkey (DJ Turkey Titans 20) UCITS ETF EUR | 0.65% p.a. |
Emerging markets indices with a large share of Turkey
Besides Turkey ETFs, you may consider ETFs on emerging markets. In total, you can invest in 3 emerging markets indices, which are tracked by 3 ETFs. The total expense ratio (TER) of ETFs on emerging markets indices is between 0.55% p.a. and 0.65% p.a..
| Index | Investment focus | Number of ETFs | Number of constituents | Short description |
|---|---|---|---|---|
| MSCI Emerging Markets EMEA | Emerging Markets
Turkey: 7.40% (31/10/2016) |
1 ETF | 164 (31/10/16) |
The MSCI Emerging Markets EMEA index tracks large and mid cap companies from emerging markets in the EMEA region (Europe, Middle East and Africa).
Index factsheet |
| MSCI Emerging Markets Europe | Europe
Turkey: 17.27% (31/10/2016) |
1 ETF | 83 (31/10/16) |
The MSCI Emerging Markets Europe index tracks the equity markets of emerging markets in Europe.
Index factsheet |
| S&P SMIT 40 | Emerging Markets
Turkey: 23.80% (31/10/2016) |
1 ETF | 40 |
The S&P SMIT 40 index tracks the 40 leading companies in four emerging markets: South Korea, Mexico, Indonesia and Turkey. Every September the weight of each country is rebalanced to 25%.
Index factsheet |
| ETF ISIN |
Fund size in m EUR |
TER in % |
Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| db x-trackers MSCI EM EMEA Index UCITS ETF 1CLU0292109005 | 68 | 0.65% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| SPDR MSCI EM Europe UCITS ETFIE00B431K857 | 13 | 0.55% p.a. | Accumulating | Ireland | Optimized sampling | |
| ComStage S&P SMIT 40 Index TRN UCITS ETFLU0860821874 | 12 | 0.60% p.a. | Accumulating | Luxembourg | Unfunded swap |
| Index | 1 month in % |
3 months in % |
6 months in % |
1 year in % |
3 years in % |
|
|---|---|---|---|---|---|---|
| MSCI Emerging Markets Europe | -4.21% | -1.65% | 7.34% | 16.40% | -4.91% | |
| MSCI Emerging Markets EMEA | -2.45% | -0.95% | 8.61% | 17.45% | 0.84% | |
| S&P SMIT 40 | -0.32% | 7.22% | 17.52% | 25.64% | 16.44% |
| Index | 2017 in % |
2016 in % |
2015 in % |
2014 in % |
2013 in % |
|
|---|---|---|---|---|---|---|
| MSCI Emerging Markets Europe | -2.52% | 28.70% | -7.00% | -18.72% | -8.92% | |
| MSCI Emerging Markets EMEA | 0.52% | 22.51% | -11.73% | -4.66% | -10.16% | |
| S&P SMIT 40 | 14.00% | 10.42% | -11.88% | 18.60% | - |
Source: justETF.com; As of 31/05/17; Calculations in EUR based on the largest ETF of the respective index.