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.

0.60% p.a. - 0.74% p.a.
annual total expense ratio (TER) of Turkey ETFs
on the Turkish stock market, which is tracked by ETFs
on the Turkish stock market
The best indices for Turkey ETFs

Performance of Turkish stocks (MSCI Turkey)

1 month: -4.28%
1 year: -5.31%
3 years: -2.41%
5 years: -5.19%

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 117 0.74% p.a. Distributing Ireland Full replication
Lyxor UCITS ETF Turkey (DJ Turkey Titans 20) EURFR0010326256 95 0.65% p.a. Accumulating France Unfunded swap
HSBC MSCI Turkey UCITS ETF USDDE000A1H49V6 5 0.60% p.a. Distributing Ireland Full replication
HSBC MSCI Turkey UCITS ETF USDIE00B5BRQB73 5 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 3.18% -8.78% -14.21% -5.96% -3.89%
Dow Jones Turkey Titans 20 3.82% -6.63% -12.80% -3.60% -3.50%
Index   2017
in %
2016
in %
2015
in %
2014
in %
2013
in %
MSCI Turkey - -5.96% -24.11% 33.82% -30.00%
Dow Jones Turkey Titans 20 - -3.60% -25.56% 34.47% -31.13%

Source: justETF.com; As of 31/12/16; Calculations in EUR based on the largest ETF of the respective index.

 

The cheapest Turkey ETFs
by total expense ratio (TER)

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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 73 0.65% p.a. Accumulating Luxembourg Unfunded swap
ComStage S&P SMIT 40 Index TRN UCITS ETFLU0860821874 10 0.60% p.a. Accumulating Luxembourg Unfunded swap
SPDR MSCI EM Europe UCITS ETFIE00B431K857 7 0.55% p.a. Accumulating Ireland Optimized sampling
 
Index   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
S&P SMIT 40 3.08% -0.97% 4.42% 10.42% 15.40%
MSCI Emerging Markets EMEA 8.04% 7.49% 12.67% 22.51% 3.10%
MSCI Emerging Markets Europe 10.10% 15.55% 19.98% 28.70% -2.71%
Index   2017
in %
2016
in %
2015
in %
2014
in %
2013
in %
S&P SMIT 40 - 10.42% -11.88% 18.60% -
MSCI Emerging Markets EMEA - 22.51% -11.73% -4.66% -10.16%
MSCI Emerging Markets Europe - 28.70% -7.00% -18.72% -8.92%

Source: justETF.com; As of 31/12/16; Calculations in EUR based on the largest ETF of the respective index.