DEFINITION of 'Taiwan, Israel, Chile and Korea - TICK'

The Taiwan, Israel, Chile and Korea - TICK is an investment theme focusing on four economies that rank between the developed and developing nations. The four nations of Taiwan, Israel, Chile and South Korea – collectively known as TICK – share some common characteristics that enhance their investment appeal. In addition to having well-functioning economies with healthy growth rates and prosperous citizenry, these nations possess strong legal and business frameworks that reduce political and country risk. The TICK investment theme came about as a counterpoint to the popular BRIC, which encompasses the giant economies of Brazil, Russia, India and China.

BREAKING DOWN 'Taiwan, Israel, Chile and Korea - TICK'

Some experts believe that the TICK nations are more appealing than the BRIC bloc from an investment viewpoint, given their smaller size, higher living standards and dynamic economies. Some also argue that the TICK nations possess sounder economic fundamentals than the BRIC giants, with historically lower rates of inflation and unemployment.

TICK Components

Taiwan's markets are among the most developed of this group. "A relatively well-developed commercial code and open-market policies that facilitate the flow of goods and capital have enabled small and medium-size enterprises to become the backbone of Taiwan’s expansion. A sound legal framework protects property rights and upholds the rule of law," the Heritage Foundation reports. Its markets, operated by the Taiwan Stock Exchange Corporation, are large and efficient, with more than 900 companies listed with a total market capitalization of more than $1 trillion. 

Israel is a worldwide center of innovation with a robust capital markets. The Tel Aviv Stock Exchange at the end of 2017 had 457 listed companies with a $231 billion market cap. "Strong trade and investment ties outside of the Middle East insulate Israel’s technologically advanced free-market economy from regional political instability. The government plans further economic liberalization, but fiscal consolidation has been deferred in favor of populist spending and tax measures demanded by the governing coalition," reports the Heritage Foundation.

Chile is the least developed of this group, though it has one of the strongest economies in South America and is ranked a high-income economy by the World Bank. The Santiago Stock Exchange had a market cap of over $216 billion, and Heritage notes that Chile is one of the top 10 nations in terms of economic freedom. "With a transparent and stable business climate, Chile maintains a dynamic environment for entrepreneurs. Barriers to free trade are quite low, and commercial operations are aided by efficient regulations that support open-market policies. Foreign investment is welcome."

Korea's economy is also quite developed, with a market cap of over $1.3 trillion and many multinational companies. "Despite a high-profile corruption scandal that led to the president’s impeachment, the rule of law is fairly well institutionalized, supporting such other pillars of economic freedom as regulatory efficiency and market openness," Heritage reported. There's no index or ETF that invests in this group of countries, but indexes for each market are available.

RELATED TERMS
  1. Tick

    The minimum upward or downward movement in the price of a security. ...
  2. Zero Minus Tick

    A securities trade executed on an exchange at the same price ...
  3. Bid Tick

    An indication of whether the latest bid price is higher, lower ...
  4. Korea Stock Exchange (KSC) .KS

    The Stock Market Division of the Korea Exchange — formerly an ...
  5. First World

    First World is a phrase that has been used to describe industrialized, ...
  6. Appeal Bond

    An appeal bond is an amount of money supplied by the appellant ...
Related Articles
  1. Investing

    Understanding BRIC Investments

    Brazil, Russia, India and China are becoming more popular for investing, but there is still plenty of risk among BRIC countries.
  2. Insights

    Why BRIC Nations Failed to Surpass G7 Economies

    What led the much touted BRIC economies to fail? Here's a sneak peek into the factors that collapsed the prospects of BRIC nations.
  3. Insights

    Ways To Invest In Developing Countries

    Here is a review of potential investments in the BRIC nations and other developing countries around the world.
  4. Tech

    Overlooked Israel Is A Portfolio Growth Engine

    While it’s often overlooked, Israel could be one of the best destinations for your portfolio dollar. Its high-tech economy is driving GDP and stock gains. For long term investors, the time to ...
  5. Trading

    An Active Trader's View on BRIC (EWZ, RSX)

    An analysis of how active traders will look at trading the BRIC economies over the weeks/months ahead.
  6. Financial Advisor

    The Case for Emerging Markets in 2016

    Read a bearish take on emerging market equities and bonds for 2016 and why structural and political challenges could signal danger for investors.
  7. Personal Finance

    Small Cap Stocks' Pricing Overhaul

    With SEC approval, up to 1,200 U.S. stocks will now have their prices quoted in increments of 5 cents, rather than 1 cent. Is this good for investors?
  8. Investing

    5 Hot Indian Stocks

    Some of these Indian stocks have returned 40%+ YTD, which shows the growth potential of this growing economy.
  9. Financial Advisor

    Emerging Markets: Analyzing Chile's GDP

    Chile has become one of the great economic success stories of Latin America.
  10. Insights

    India Is Eclipsing China's Economy As Brightest BRIC Star

    It seems fitting that on the occasion of Diwali – the Hindu “festival of lights” – India should emerge as the brightest star in the BRIC firmament.
RELATED FAQS
  1. What is a BRIC nation?

    BRIC is an acronym for the combined economies of Brazil, Russia, India and China. Read Answer >>
  2. What country spends the most on research and development?

    Discover which country spends the most on research and development, in both dollar terms and as a percentage of gross domestic ... Read Answer >>
  3. How is an economy formed and why does it grow?

    Find out how an economy forms and why it grows, including the role that financial markets play and how productivity increases ... Read Answer >>
  4. What's the Difference Between a Market Economy and a Command Economy?

    Set by supply and demand, a market economy operates through a price system; in a command economy, governments control the ... Read Answer >>
  5. To what extent can a government intervene in a market economy?

    Find out at what point a market economy receives so much government intervention that it can no longer be considered a market ... Read Answer >>
Hot Definitions
  1. Inflation

    Inflation is the rate at which prices for goods and services is rising and the worth of currency is dropping.
  2. Discount Rate

    Discount rate is the interest rate charged to commercial banks and other depository institutions for loans received from ...
  3. Economies of Scale

    Economies of scale refer to reduced costs per unit that arise from increased total output of a product. For example, a larger ...
  4. Quick Ratio

    The quick ratio measures a company’s ability to meet its short-term obligations with its most liquid assets.
  5. Leverage

    Leverage results from using borrowed capital as a source of funding when investing to expand the firm's asset base and generate ...
  6. Financial Risk

    Financial risk is the possibility that shareholders will lose money when investing in a company if its cash flow fails to ...
Trading Center