EIDO offers investors exposure to the emerging market of Indonesia by investing in securities of companies that are based in the nation. Since many of the large caps in this fund are likely to not be found in other EM funds, EIDO could make for an interesting satellite holding but is probably not appropriate as a core holding in a diversified portfolio. For investors seeking greater exposure to the Indonesian market, EIDO is one of the only โpure playโ option available.
Indonesia is part of the EAGLEs (emerging and growth-leading economies), whose contribution to world economic growth in the next ten years is expected to larger than the average of the G6 economies (G7 excluding the US).