Profit from Asia’s bright future

Article Excerpt

China, India and Asia’s other emerging markets have seen strong growth for several decades. Recently, though, their economies have been knocked back by stringent measures to curtail the COVID-19 pandemic. However, there are solid signs of recovery. That bodes well over the next few years for investors in emerging Asian ETFs. See below. Meanwhile, the supplement starting on page 89 provides more information on the performance of Asian economies. ISHARES ASIA 50 ETF $72.48 (Nasdaq symbol AIA; TSINetwork ETF Rating: Aggressive; Market cap: $1.3 billion) tracks the S&P Asia 50 Index. To qualify for inclusion, stocks must be listed in Hong Kong, South Korea, Singapore, or Taiwan. The ETF holds stocks in proportion to their market capitalizations with some adjustments for trading liquidity. The ETF’s country allocations are to China (39%), South Korea (22%), Taiwan (19%), Hong Kong (16%), and Singapore (4%). The largest industry exposures are in Information Technology (31%), Financials (27%), Communication Services (23%), Consumer Discretionary (5.9%), and Mining (3.3%). The ETF currently holds 51 stocks;…