Investing in Thailand – ETFs

ETFs are well known to offer the easiest way to invest. The costs are low, they offer immediate diversification, and they don’t require too much research. If your brain is already occupied with too many things and you don’t want to be bothered with additional decisions, this is the obvious way to get started.

The stock market of Thailand has not missed that trend, and there are several ETFs available for local investors. However, compared with brokers that I use in Europe, the selection is pretty limited.

At the time of writing this article, there are exactly 11 ETFs registered with the SET. 8 of them are focused on different types of assets, companies and industries within the SET, 1 is for bonds, and then we have 1 for Gold as a commodity and only 1 that traces one foreign market: China.

You can find the full list of available ETFs right here:
https://www.set.or.th/set/etfstatistics.do?language=en&country=US

Personally I like ETFs and recommend them as an easy long-term-investment-solution. I have set up a small stock account for my daughter, mainly to have some kind of starter fund for her when she moves out into the world, and this account consists of 4 ETFs:

  • 1 x ETF that focuses on high-dividend stocks on the SET
  • 1 x ETF for the overall Thai market
  • 1 x ETF focusing on small and medium companies in Thailand
  • 1 x ETF focusing on China

This ETF account is performing better than the stock account that I set up for my wife. Well, as we know, it’s hard to beat the market. Her stock account is however focusing on creating a monthly dividend income stream. This target can’t be achieved with only ETFs in Thailand.

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