r/AusFinance • u/Character-Air-747 • 5h ago
Which Asian focused ETF?
Hello. Im 52 F who loves her job so plans to work until 65. I have about 28K in various ETFs and want to buy a more Asia focused ETF. Which one(s) are good for a 10year plus investor. Ive looked at ASIA and AIA but I’m sure there are others.
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u/SwaankyKoala 4h ago
If you're planning to work until 65, why are you investing in ETFs? Most people use ETFs to sell before 60 until they can access super.
If you're just going to access super at 65, you really should be putting the money into super instead, as the tax environment is more favourable.
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u/Character-Air-747 4h ago
I have enough super-especially if I keep working for another 13years. I want to learn to invest and also invest on behalf of my young adult children
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u/SwaankyKoala 3h ago
If it is on behalf of your children, putting it in super is still better than ETFs outside of super, mostly because you won't pay tax when you take the money out of super vs paying capital tax gains when selling ETFs: Investing for children – The ultimate guide.
If you want to learn how to invest, you read resources like the website linked above or my website: https://lazykoalainvesting.com
"Which Asian ETF?" is not a good question to ask, as it leads to options that are unnecessarily concentrated and risky. Better questions to ask would be what is your current portfolio and what you're trying to achieve.
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u/Simply_charmingMan 3h ago
i doubled my ASIA over 5 ys $7 to $14 by the time i sold, take a closer look at them.
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u/Ok-Maintenance-4274 46m ago
I use a combination of ASIA and HJPN. Note that the volatility recently is pretty crazy
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u/Jelativ 5h ago
Why do you want to focus on the Asian market specifically?
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u/Ok-Drama2639 5h ago
You like the growth story or just looking to spread out from US-heavy stuff? ASIA and AIA are both fine, I think ASIA has more tech inside but the fees is a bit higher. For long hold like 10 years maybe check IAA too, more exposure in China which can be risky but also bigger upside if things go smooth.
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u/WavyBillboard 4h ago
Could consider DRGN, which is China focused tech.
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u/CruisingFIRE 3h ago
-29% over the past year when Asian countries like Taiwan and Korea have been booming is quite unique.
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u/fire-fire-001 5h ago edited 4h ago
We use EMXC, which is a broadly diversified Emerging Markets (EM) ETF excluding China. It’s mostly Asian countries (I think 75%+ currently) but is more diversified than just Asia, and it has done well so far outperforming many of the funds with “Asia” in the name.
Incidentally, EMXC has the lowest MER among the EM / Asia ETFs, which is another factor to consider when choosing from amongst comparable indexed funds.
In terms of Asia
- in the past 5 years, as a whole the region has done well, but it may not necessarily be the same over the long term. Within the region, Taiwan, Korea, and Japan have done particularly well, outperforming S&P 500 & even Nasdaq 100. But some others have not done so well, ie it’s not all singing and dancing. Some countries in Asia actually produced a terrible negative market return over 5 years.
- Japan, which outperformed most Asian countries except perhaps Taiwan and Korea (I think Korea and Japan were close) as mentioned above, is excluded from all Asia / EM funds because it is classified in the Developed Markets (DM) segment. You generally get exposure to it via a broadly diversified DM ETF like BGBL / VGS.
- China is not a proper market economy. It carries unique risks for foreign investments and cannot be expected to deliver returns over economic cycles as if it’s a normal market economy. We consciously chose to avoid it where we could when the EMXC option became available. This recent thread may be useful - https://www.reddit.com/r/fiaustralia/s/hmJHasD2i3