Thailand may not have found a place in investment acronyms such as BRICS – (Brazil, Russia, India, China and South Africa) or TIMPs – (Turkey, Indonesia Mexico and the Philippines), but theres no denying that it has been one of the best-performing stock markets over the past decade. Many know Thailand for its beaches, fantastic food and recent political instability, but beyond that its an export hub with dynamic growth and solid stock market performance. Thailand is an interesting case where the economy has progressed amidst short periods of political stability, almost irrepressibly so. (For related reading, see: This Asian Nation Is Poised For Steady Growth .)

Naturally Rich

With a cornucopia of natural resources like gas, oil, sugar, coconuts and other agricultural products and minerals, the country has focused on exports. Its the worlds largest exporter of rice and also a major shrimp producer. In addition, several foreign automakers have operations in the country. Exports account for approximately 60% of Thailands GDP. Domestically, huge infrastructure project investments have been stimulating the economy. Thailands service economy, which includes banking, finance and tourism, accounts for almost half of its GDP and employs about 40% of its citizens.

Political Turmoil – Thai Style

The country has recently witnessed its 19th military coup since 1930 after years of unrest. Political upheaval has taken a toll on the economy, as seen in the contraction of Q1 GDP. Business confidence has been hurt and investment has slowed. On May 20, General Prayuth Chan-ocha launched a coup against a caretaker government. His junta, the The National Council for Peace and Order (NCPO), censored broadcasters, repealed the constitution and arrested Thai cabinet members. He is focused on restoring confidence and keeping the economy on track by cracking down on protestors. (For related reading, see: Should India Be On Investors Radar? .)

Stocks Shrugging Off the Trouble

Thai stocks seem to have welcomed the prospect of stability. So far in 2014, the SET (Stock Exchange of Thailand) Index has returned about 20%. Thai stocks had hit a low of 855.45 in October 2011 and a high of 1,643.43 in May 2013. The SET started 2014 at about 1,230 after unrest began to boil over in October. Its now trading at about 1,500. The path going forward may be shaky, though, and any dip could be construed as a good time to enter the market at a reasonable valuation.

Some of the good stock picks on the SET come from industrial, healthcare and infrastructure sectors, and high-dividend stocks such as utility companies. Some prominent names are hospitality concern Minor International (MINT ), Bumrungrad International Hospital (BH ), International Engineering Co. (IEC ), Eternal Energy PCL (EE ), Eastern Star Real Estate PCL (ESTAR ), Bangkok Land (BLAND ), Jasmine International PCL (JAS ) and Airports of Thailand PCL (AOT ).

Buying Thai Stocks

There are a few different ways for investors to invest in Thai stocks.

The simplest way to invest in a diversified basket of Thai stocks without undergoing currency risk is via exchange-traded funds (ETFs). There is one ETF which concentrates exclusively on Thailand, the iShares MSCI Thailand Capped ETF (THD ). Its the most convenient and popular option for a U.S. investor to participate in the Thai economy. The fund has net assets of around $540 million and about 120 holdings. It has more than doubled in value over the past five years (see returns below). Its five-largest holdings currently are from the financial, energy and telecommunication services sector. (For related reading, see: Get Emerging Markets Exposure With This ETF . )