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 3 ETFs are available. On the Dow Jones Turkey Titans 20 index there is 1 ETF. On the MSCI Turkey index there are 2 ETFs. The total expense ratio (TER) of ETFs on these indices is between 0.45% 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 | 2 ETFs | 24 (31/08/18) |
The MSCI Turkey index tracks Turkish large and mid cap stocks.
Index factsheet |
| ETF ISIN |
Fund size in m GBP |
TER in % |
Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| iShares MSCI Turkey UCITS ETFIE00B1FZS574 | 197 | 0.74% p.a. | Distributing | Ireland | Full replication | |
| Lyxor Turkey (DJ Turkey Titans 20) UCITS ETF EURFR0010326256 | 85 | 0.45% p.a. | Accumulating | France | Unfunded swap | |
| HSBC MSCI Turkey UCITS ETF USDIE00B5BRQB73 | 8 | 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 | 11.34% | 38.15% | -17.08% | -26.60% | -14.76% | |
| Dow Jones Turkey Titans 20 | 11.19% | 38.63% | -17.47% | -25.92% | -13.69% |
| Index | 2018 in % |
2017 in % |
2016 in % |
2015 in % |
2014 in % |
|
|---|---|---|---|---|---|---|
| Dow Jones Turkey Titans 20 | -35.37% | 24.66% | 12.45% | -29.86% | 25.65% | |
| MSCI Turkey | -34.90% | 25.24% | 9.53% | -28.78% | 25.21% |
Source: justETF.com; As of 30/11/18; Calculations in GBP 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 | -25.92% |
| 2 | HSBC MSCI Turkey UCITS ETF USD | -26.30% |
| 3 | iShares MSCI Turkey UCITS ETF | -26.60% |
The cheapest Turkey ETFs
by total expense ratio (TER)
| 1 | Lyxor Turkey (DJ Turkey Titans 20) UCITS ETF EUR | 0.45% p.a. |
| 2 | HSBC MSCI Turkey UCITS ETF USD | 0.60% p.a. |
| 3 | iShares MSCI Turkey UCITS ETF | 0.74% 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 1 emerging markets index, which is tracked by 1 ETF. The total expense ratio (TER) of ETFs on emerging markets indices is around 0.65% p.a..
| Index | Investment focus | Number of ETFs | Number of constituents | Short description |
|---|---|---|---|---|
| MSCI Emerging Markets EMEA | Emerging Markets
Turkey: 7.13% (29/12/2017) |
1 ETF | 161 (31/08/18) |
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 |
| ETF ISIN |
Fund size in m GBP |
TER in % |
Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| Xtrackers MSCI EM EMEA Index Swap UCITS ETF 1CLU0292109005 | 43 | 0.65% 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 EMEA | 6.54% | 1.59% | -2.87% | -4.24% | 35.80% |
| Index | 2018 in % |
2017 in % |
2016 in % |
2015 in % |
2014 in % |
|
|---|---|---|---|---|---|---|
| MSCI Emerging Markets EMEA | -10.05% | 12.58% | 42.89% | -16.79% | -10.94% |
Source: justETF.com; As of 30/11/18; Calculations in GBP based on the largest ETF of the respective index.