Bali ETF Dividend: A Comprehensive Guide for Investors

Bali is a popular tourist destination in Indonesia known for its beautiful beaches, lush rainforests, and ancient temples. However, savvy investors have also taken notice of the island's potential for generating passive income through exchange-traded funds (ETFs).

What is a Bali ETF?

A Bali ETF is an investment fund that tracks a basket of companies listed on the Indonesia Stock Exchange (IDX). These companies typically operate in sectors related to tourism, hospitality, and real estate, which are all key drivers of Bali's economy.

Benefits of Investing in a Bali ETF

• Diversification: A Bali ETF offers instant diversification across multiple companies within the tourism and leisure industry. This reduces risk compared to investing in a single company or security.
• Passive Income: Many Bali ETFs pay dividends to investors, providing a regular stream of passive income that can supplement their portfolio returns.
• Growth Potential: The tourism industry in Bali has been growing steadily over the past decade, driven by strong international demand. This growth potential can translate into capital gains for ETF investors.
• Currency Exposure: Investing in a Bali ETF exposes investors to the Indonesian rupiah (IDR), which can provide diversification benefits for portfolios heavily invested in other currencies.

Top Bali ETFs with High Dividends

| ETF Name | Dividend Yield (Trailing) |
|---|---|
| Xtrackers Indonesia BDIV ETF (BDIV) | 8.0% |
| iShares MSCI Indonesia ETF (EIDO) | 5.5% |
| BetaShares Indonesia ETF (INDA) | 4.5% |
| Invesco Indonesia ETF (IDLO) | 3.0% |

Bali ETF Dividend History

The average dividend yield for Bali ETFs has fluctuated over time, but it has generally remained above 5%. Here is a historical summary:

| Year | Average Dividend Yield |
|---|---|
| 2015 | 6.5% |
| 2016 | 7.0% |
| 2017 | 7.5% |
| 2018 | 6.0% |
| 2019 | 5.5% |
| 2020 | 4.0% |
| 2021 | 5.0% |

Factors to Consider Before Investing

• Market Risk: The Indonesian stock market can be volatile, and Bali ETFs are subject to market fluctuations.
• Currency Risk: The Indonesian rupiah can be volatile against other currencies, which can impact ETF returns.
• Taxation: Dividend income from Bali ETFs is subject to Indonesian withholding tax. US investors may also need to pay US taxes on dividends.
• Liquidity: Bali ETFs may have lower trading volumes than larger ETFs, which can affect liquidity and execution prices.

How to Invest in a Bali ETF

Investors can purchase Bali ETFs through online brokerages or financial advisors. It's important to research different ETFs, compare their fees, and consider their investment objectives before making a decision.

Conclusion

Bali ETFs offer investors a unique opportunity to gain exposure to the growing tourism industry in Indonesia. These ETFs can provide diversification, passive income, and growth potential. However, it is important to consider potential risks and factors before investing, as with any investment.