EIDO has had a bad track record. If you invested on May 3 2010 when the ETF opened you would have lost 35% of that position during the same timeframe of S&P returning 696%.
https://preview.redd.it/nfndyp4njjhh1.png?width=1372&format=png&auto=webp&s=4a3ea09805f9f177d6396f17f1343abe834d2885
Indonesia has become more and more univestable over the years mostly because they hyperinflated their currency (as a lot of developing countries do). They have a lot of state owned enterprises plus bad governance which is extremely bad for doing business (we might be heading there with AI ourselves). More investors would buy crappy yield bonds or junk bonds than invest in Indonesia.
My thesis for trading this is purely short-term technicals. In this 1-day chart, you can see higher lows, inverted H&S and cup and handle, retesting the breakout level at 12.70. Extrapolating from these technicals and the RSI suggests a high probability of the shares reaching 13.00.
https://preview.redd.it/k8f7avwkkjhh1.png?width=1376&format=png&auto=webp&s=b6b0aafec5e5929bfa2b7a841c8a4ac47d39ba00
Indonesian inflation is bottoming and they're starting to relax their own export regulations with regard to rare earths. Their financial companies are also doing pretty well. I think the probability is high that they find a way to fuck it up long term which is why I'm only going for a short-term breakout trade. It's possible this could be a "long term deep value play" the same way it's possible I win 3 lotteries tomorrow.
This ETF itself has an average dividend yield of 3.2% at the current price which is not great but considering it's "international exposure/developing markets exposure" which for some reason some boomers and boomer funds want, I think it puts a hard floor on the ETF price at $8.13 which corresponds with a 5% dividend yield. My stop loss will have triggered long before then, but at that price I'd be taking a position regardless of fundamentals/technicals.
**My position is 2550 shares at a cost basis of 12.58. ($32,000)** I'm targeting a breakout to $13.00 to trim 3/4 of the position for a $530 profit, then putting a trailing stop on the rest. NFA