share
Look at the list of best performing ASX Exchange Traded Funds (ETFs) and most have one thing in common – exposure to China.
The average ETF is only up 1 per cent in the last month and 12 per cent in 6 months but the top winners are almost exclusively occupied with Asia-focused ETFs.
Some ASX ETFs are exclusively focused on China, others have broader regional themes that inevitably include Chinese companies.
Sitting on top is Betashares’ AsiaTech Tigers ETF (ASX:ASIA), up 80 per cent in the last year and 16 per cent in January.
BetaShares boasts that includes technology giants hailing from China including Alibaba, Tencent, Baidu and JD.
Next is Ishares’ Asia 50 ETF (ASX:IAA) which tracks the S&P Asia 50 Index – an indice of the 50 Asian stocks part of the S&P Global 1200. Again, this includes Chinese tech giants such as Tencent and Xiaomi.
Also sitting on solid gains are Ishares’ China ETF (ASX:IZZ) and Van Eck’s China A50 ETF (AS:CETF).
Here’s a list of the top performing ASX ETFs:
Click headings to sort. Scroll or swipe to reveal table.
Code | ETF | Price | %Mth | %SixMth | %Wk | %Yr | MktCap |
---|---|---|---|---|---|---|---|
ASIA | Beta AsiaTech Tigers | 13.32 | 16 | 45 | -1 | 80 | $ 582,536,030.96 |
IAA | Ishs Asia 50 ETF | 128.78 | 13 | 32 | -1 | 36 | $ 811,102,200.51 |
CURE | ETFS S&P Biotech | 79.6 | 12 | 35 | 5 | 39 | $ 38,178,088.82 |
IZZ | Ishs China Etf | 67.1 | 11 | 16 | -2 | 12 | $ 136,905,689.16 |
EMMG | Beta LM EM Fund | 7.43 | 10 | 24 | -1 | 20 | $ 16,353,303.82 |
IJR | iShares Small-Cap | 130.34 | 10 | 32 | -1 | 6 | $ 239,132,550.24 |
ROBO | ETFS ROBO Glb Robo Auto | 89.68 | 9 | 37 | -1 | 37 | $ 198,555,216.40 |
LPGD | Loftus Peak | 3.07 | 9 | 0 | 0 | 0 | $ 19,550,781.70 |
EMKT | Vaneck Emerging Mkt | 21.7 | 8 | 14 | 0 | 6 | $ 42,701,275.98 |
VAE | Vgd Ftse Asia Ex Jpn | 83.59 | 8 | 21 | -2 | 21 | $ 299,804,505.00 |
IKO | iShares MSCI Sk ETF | 123.25 | 8 | 44 | -1 | 37 | $ 67,195,806.00 |
ESPO | VanEck Video Gaming | 11.95 | 8 | 0 | -1 | 0 | $ 60,424,000.00 |
IEM | Ishs MSCI Emg Mktetf | 72.66 | 7 | 20 | -1 | 14 | $ 899,082,199.50 |
PAXX | Platinum Asia Fund | 6.03 | 7 | 23 | -2 | 33 | $ 191,352,469.80 |
CETF | VanEck China A50 | 73.85 | 7 | 24 | -2 | 28 | $ 30,733,711.40 |
VGE | Vngd Emerging Mkts | 77.8 | 6 | 16 | -1 | 10 | $ 475,890,240.80 |
ACDC | ETFS Batt Tech Lith | 88.2 | 6 | 58 | -3 | 61 | $ 83,147,285.84 |
FANG | ETFs Fang+ | 17.17 | 6 | 33 | 0 | 0 | $ 180,963,356.20 |
FEMX | Fidelity Gem | 6.73 | 6 | 24 | -1 | 20 | $ 171,065,073.06 |
MVB | Vaneck Banks | 25.61 | 5 | 26 | -1 | -6 | $ 118,563,773.51 |
IJH | iShares Mid-Cap ETF | 313 | 5 | 21 | -2 | 3 | $ 154,538,833.80 |
VVLU | Vngd Globvlu Atv ETF | 46.73 | 4 | 23 | -1 | -8 | $ 55,210,131.27 |
RBTZ | Beta Robotics & AI | 14.17 | 4 | 29 | -1 | 33 | $ 110,943,210.00 |
NDQ | Betasharesnasdaq100 | 28.86 | 4 | 16 | 0 | 24 | $ 1,473,749,389.66 |
TECH | ETFSglobaltech | 104.05 | 4 | 27 | 0 | 17 | $ 248,332,533.45 |
FOOD | Beta Global Agri | 6.39 | 4 | 25 | -1 | 13 | $ 21,518,349.30 |
HNDQ | BetaNasdaq100CH | 30.87 | 4 | 21 | -1 | 0 | $ 50,966,000.00 |
ATEC | BetaAusTechnologyETF | 23.9 | 4 | 36 | -1 | 0 | $ 173,313,155.40 |
ZYUS | ETFS S&P500 Yield | 10.67 | 3 | 7 | 0 | -23 | $ 66,806,913.72 |
NDIA | ETFS India Nifty 50 | 51.58 | 3 | 21 | 2 | 0 | $ 13,302,900.00 |
VISM | Vngd Intl Small Cap | 58.35 | 3 | 23 | 0 | 2 | $ 74,832,414.80 |
WEMG | SPDR EMERGING MKTS | 24.69 | 3 | 14 | -5 | 4 | $ 21,432,747.06 |
CNEW | VanEck China New | 8.86 | 3 | -8 | -2 | 27 | $ 169,111,975.20 |
OZF | SPDR 200 Financials | 18.35 | 3 | 19 | -1 | -9 | $ 113,024,214.87 |
PIXX | Platinum Int Fund | 4.92 | 3 | 18 | -1 | 4 | $ 332,343,301.71 |
GGUS | Beta Geared US EQ | 25.72 | 3 | 37 | -4 | 15 | $ 56,787,000.00 |
VHY | Vngd Aus High Yield | 60.6 | 3 | 17 | -1 | -2 | $ 1,597,748,593.91 |
ILC | iShares S&P/ASX 20 | 26.33 | 3 | 16 | -1 | -3 | $ 369,406,252.24 |
MOGL | Mogl (Managed Fund) | 3.44 | 3 | 7 | 1 | -11 | $ 83,624,681.28 |
IOO | Ishs Global 100 Etf | 83.98 | 3 | 10 | 0 | 2 | $ 1,974,084,024.90 |
IXJ | Ishs Glob Health Etf | 101.08 | 2 | 2 | -1 | -2 | $ 815,976,509.55 |
SFY | SPDR 50 Fund | 59.87 | 2 | 13 | -1 | -7 | $ 701,457,765.80 |
HLTH | VanEck Glbl Hlth Ldr | 10.55 | 2 | 0 | -1 | 0 | $ 37,980,000.00 |
MSTR | MSTR INT SHR ACT ETF | 10.17 | 2 | 17 | -1 | 13 | $ 102,167,221.71 |
IVV | iShares S&P 500 ETF | 496.13 | 2 | 10 | -1 | 1 | $ 3,590,563,270.56 |
DRUG | Beta Global Health | 7.08 | 2 | 7 | -2 | 7 | $ 86,494,087.32 |
IOZ | iShares S&P/ASX 200. | 27.66 | 2 | 14 | -1 | -3 | $ 3,703,069,258.24 |
QFN | Betashares Asx Fin | 10.25 | 2 | 20 | -1 | -8 | $ 40,519,460.28 |
IWLD | Ishares Core Wld | 39.41 | 2 | 11 | -1 | -1 | $ 139,097,461.10 |
STW | SPDR 200 Fund | 62.56 | 2 | 13 | -1 | -4 | $ 4,249,056,464.25 |
A200 | Betaaustralia200ETF | 113 | 2 | 14 | -1 | -3 | $ 1,119,671,961.50 |
VAS | Vngd Aus Shares | 86.16 | 2 | 14 | -1 | -3 | $ 7,210,684,552.24 |
WDIV | SPDR GLOBAL DIVIDEND | 16.16 | 2 | 10 | 0 | -24 | $ 273,730,125.02 |
QUS | Beta SP500 Equal ETF | 33.9 | 2 | 4 | -1 | -16 | $ 58,759,749.09 |
IHWL | Ishares Core Wld Aud | 40.54 | 2 | 16 | -2 | 8 | $ 245,644,651.80 |
VESG | VNGD ETHI INTL SHS | 62.41 | 2 | 11 | -1 | 4 | $ 201,721,750.80 |
MOAT | Vaneck Us Wide Moat | 81.7 | 2 | 9 | -2 | -1 | $ 196,051,390.75 |
HACK | Beta Global Cyber | 8.97 | 2 | 19 | -1 | 12 | $ 371,152,927.20 |
EIGA | Einvest Income | 3.62 | 2 | 14 | -1 | -9 | $ 25,389,918.54 |
VLC | Vngd Aus Large | 69.05 | 2 | 14 | -1 | -4 | $ 120,168,809.20 |
IHOO | iShs Global100AUDHedged | 138.58 | 2 | 15 | -1 | 8 | $ 107,841,870.50 |
ETHI | Betasustainability | 11 | 2 | 15 | -2 | 6 | $ 1,068,541,118.27 |
IHVV | iShs S&P500AUDHedged | 450.19 | 2 | 16 | -2 | 9 | $ 745,720,027.50 |
DJRE | SPDR DJ GLOBAL REIT | 19 | 2 | 5 | 2 | -25 | $ 342,209,891.88 |
WXHG | SPDR World Ex Oz Hdg | 25.96 | 2 | 17 | -2 | 6 | $ 116,350,663.10 |
QOZ | Betasharesrafiaus | 13.65 | 1 | 18 | -1 | -3 | $ 318,668,841.84 |
IIND | BetaShares India. | 9.23 | 1 | 17 | -2 | 5 | $ 35,877,735.90 |
RDV | Russell High Div ETF | 27.15 | 1 | 17 | -1 | -11 | $ 262,474,050.08 |
HJPN | Betashares Wt Japan | 15.28 | 1 | 28 | -1 | 19 | $ 54,774,198.22 |
VGMF | VanguardMultiFactor | 51 | 1 | 12 | -4 | -8 | $ 19,695,537.00 |
WCMQ | WCMQualityGlobalGrow | 7.6 | 1 | 12 | -3 | 17 | $ 206,738,606.93 |
SWTZ | Switzer Div Growth Fund (Managed Fund) | 2.42 | 1 | 13 | -1 | -9 | $ 81,188,940.00 |
WDMF | ISHARES EDGE WLD MF | 35.02 | 1 | 11 | -1 | -3 | $ 177,965,703.72 |
UMAX | BETA S&P500 YIELDMAX | 18.55 | 1 | 6 | 0 | -15 | $ 90,465,463.50 |
IJP | Ishs MSCI Japan ETF | 88.64 | 1 | 17 | -1 | 2 | $ 333,269,359.20 |
E200 | StateStreetE200 | 22.8 | 1 | 0 | -1 | 0 | $ 18,982,933.97 |
IMPQ | EINVEST FISCF | 5.49 | 1 | 28 | -2 | 19 | $ 4,321,160.84 |
VGS | Vngd Intl Shares | 85.02 | 1 | 10 | -1 | -1 | $ 2,611,717,734.08 |
ESGI | Vaneck Esg Internatl | 25.5 | 1 | 7 | -1 | -1 | $ 55,771,062.07 |
HETH | BetaSustainabilityCH | 11.83 | 1 | 19 | -3 | 0 | $ 85,191,000.00 |
VETH | VanEthicConAustShETF | 54.04 | 1 | 0 | -1 | 0 | $ 23,408,000.00 |
AGX1 | Antpds Globl Shrs | 5.79 | 1 | 14 | -3 | 2 | $ 27,822,270.12 |
YMAX | Betasharesyieldmax | 7.6 | 1 | 7 | -1 | -12 | $ 275,548,271.88 |
REIT | VanEck Internat Reit | 17.31 | 1 | 8 | 2 | -19 | $ 70,687,723.50 |
QUAL | Vaneck Wld Xau Qual | 33.6 | 1 | 8 | -1 | 3 | $ 1,512,596,792.16 |
HEUR | Betashares Wt Europe | 11.98 | 1 | 14 | -2 | -12 | $ 35,698,799.50 |
SSO | SPDR Small Ords | 16.75 | 0 | 16 | -2 | 5 | $ 25,204,161.80 |
OZR | SPDR 200 Resources | 12.78 | 0 | 13 | -5 | 5 | $ 110,226,159.36 |
F100 | BetaShares FTSE 100 | 8.85 | 0 | 7 | -2 | -19 | $ 226,939,836.24 |
IVE | Ishs MSCI EAFE Etf | 96.29 | 0 | 11 | -1 | -6 | $ 383,646,635.80 |
QLTY | Beta Quality Leaders | 20.95 | 0 | 8 | -1 | 5 | $ 109,444,774.40 |
MHG | Magellan Gbl Eq Fund | 3.65 | 0 | 4 | -1 | -1 | $ 321,374,409.04 |
WRLD | BETA MANAGED RISK GL | 13.47 | 0 | 5 | -1 | -6 | $ 58,942,474.50 |
VBLD | Vngd Glb Infra | 52.65 | 0 | -1 | 0 | -20 | $ 106,942,172.60 |
IHD | iShares S&P Div Opp | 13.44 | 0 | 10 | -3 | -7 | $ 274,058,091.12 |
WVOL | ISHARES EDGEWLD MVOL | 31.4 | 0 | 1 | 0 | -13 | $ 111,393,896.60 |
AUSSOM | CTW 7.5744 Jun21 Iw A | 10.94 | 0 | 0 | 0 | 0 | $ 25,185,000.00 |
QHAL | VanEck Qual Hedged | 34.21 | 0 | 13 | -2 | 11 | $ 289,266,150.49 |
HVST | BETA DIVHARVESTER | 13.5 | 0 | 3 | -1 | -11 | $ 130,711,380.65 |
ISO | iShares Small Ords | 5.34 | 0 | 19 | -2 | 4 | $ 112,337,871.30 |
HQLT | BetaQualityLeadersch | 23.62 | 0 | 14 | -2 | 0 | $ 10,435,500.00 |
MVW | Vaneck Equal Weight | 30.8 | 0 | 15 | -1 | -4 | $ 1,389,716,909.40 |
RARI | RUSSAUSTRESPINVETF | 23.33 | 0 | 17 | -1 | -11 | $ 261,553,438.00 |
CORE | ETFS Glb Core Infra | 43.56 | 0 | -2 | 0 | -34 | $ 14,845,335.12 |
WXOZ | SPDR World Ex Oz | 35.47 | 0 | 9 | -3 | -2 | $ 219,261,742.17 |
VSO | Vngd Aus Small | 63.88 | 0 | 19 | -1 | 4 | $ 459,841,219.00 |
SYI | Spdrmsciauselecthdy | 28.32 | 0 | 16 | -2 | -6 | $ 199,467,264.56 |
VEQ | Vgd Ftse Eur Shares | 56.57 | 0 | 8 | -1 | -8 | $ 230,667,751.28 |
IEU | Ishs Europe Etf | 62.85 | 0 | 7 | -1 | -9 | $ 541,391,478.81 |
VMIN | Vngd Min Vol Atv ETF | 55.58 | -1 | 1 | 0 | -9 | $ 12,288,657.15 |
QRE | Betashares Asx Res | 7.08 | -1 | 14 | -5 | 7 | $ 77,841,947.13 |
MVOL | ISHARES EDGE AU MVOL | 28.11 | -1 | 5 | 0 | -8 | $ 72,649,880.08 |
EINC | Beta LM Equity Income | 7.98 | -1 | 11 | -2 | -10 | $ 28,465,322.34 |
VDCO | Vngd Div Conserv | 55.74 | -1 | 1 | 1 | -2 | $ 146,308,152.00 |
ZYAU | ETFS Asx300 Yield | 9.41 | -1 | 2 | -2 | -18 | $ 102,112,026.32 |
SMLL | BetaSmallCompanies | 3.91 | -1 | 22 | -2 | 11 | $ 49,739,861.76 |
FAIR | Betaausustainability | 18.14 | -1 | 8 | -1 | -6 | $ 803,639,461.68 |
MNRS | Beta Global Gold | 6.66 | -1 | -17 | 2 | 26 | $ 62,536,889.31 |
MVE | Vaneck Midcap | 33.1 | -1 | 20 | -1 | 9 | $ 175,080,168.00 |
IFRA | VANECKINFRASTRUCTURE | 19.36 | -1 | 3 | 0 | -16 | $ 332,425,728.00 |
INCM | Beta Income Leaders | 12.32 | -1 | 2 | -1 | -28 | $ 16,661,678.88 |
QMIX | SPDR MSCI WORLD QMIX | 21.06 | -1 | 5 | -3 | -11 | $ 23,446,329.66 |
EX20 | Betaausex20 | 18.69 | -1 | 14 | -2 | -4 | $ 163,229,091.34 |
BNKS | Beta Global Banks | 5.45 | -1 | 18 | -3 | -17 | $ 31,247,272.83 |
FUEL | Beta Global Energy | 3.75 | -1 | 9 | -5 | -30 | $ 270,823,687.50 |
VDBA | Vngd Div Balance | 56 | -1 | 3 | -1 | -4 | $ 334,830,444.45 |
GDX | Vaneck Gold Miners | 46.92 | -1 | -20 | 3 | 11 | $ 368,094,494.40 |
INIF | InvestsmartAuIncFund | 2.52 | -2 | 21 | -2 | 3 | $ 42,490,251.60 |
VDGR | Vngd Div Growth | 56.66 | -2 | 7 | -1 | -3 | $ 341,502,300.00 |
VDHG | Vngd Div High Growth | 57.49 | -2 | 10 | -1 | -3 | $ 652,738,299.18 |
AUST | BETA MANAGED RISK AU | 16.1 | -2 | 5 | -2 | -8 | $ 39,179,237.30 |
INES | Investsmart SHS fund | 3.19 | -2 | 19 | -2 | 18 | $ 25,412,457.72 |
VGAD | VNGD INTL SHARES H | 81.11 | -2 | 12 | -2 | 6 | $ 1,316,645,882.10 |
BEAR | Betashares Aust Bear | 10.31 | -2 | -14 | 1 | -9 | $ 76,306,735.54 |
GRNV | VanEck ESG Australia | 25.34 | -3 | 8 | -2 | -8 | $ 74,811,078.36 |
MVR | Vaneck Resources | 29.81 | -3 | 8 | -5 | -2 | $ 113,686,633.59 |
ESTX | ETFSeurostoxx50 | 64.79 | -3 | 4 | -2 | -9 | $ 46,448,469.32 |
IIGF | InvestSMARTAUGthFund | 2.72 | -3 | 0 | -3 | 0 | $ 52,323,851.00 |
MICH | Mag. Infra. Fund Ch | 2.72 | -3 | -2 | 0 | -19 | $ 664,653,702.60 |
AASF | Airlie Aus Fund | 2.9 | -3 | 12 | -4 | 0 | $ 44,019,833.70 |
SELF | SLFWLTH SMSF LEADRS | 43.5 | -3 | 6 | -5 | -16 | $ 94,567,999.50 |
MVS | Vaneck Small Masters | 19.75 | -4 | 11 | -2 | -5 | $ 80,748,724.25 |
IXI | iShs Global Cons ETF | 73.43 | -4 | -4 | 0 | -12 | $ 113,882,403.15 |
RINC | Beta LM Real Income | 8.03 | -4 | 8 | -1 | -20 | $ 47,693,802.80 |
SLF | SPDR S&P/ASX Prop Fu | 11.72 | -5 | 15 | -5 | -20 | $ 570,948,011.76 |
BBUS | Beta Us Str Bear | 1.5 | -5 | -36 | 4 | -48 | $ 194,997,000.00 |
VAP | Vngd Aus Prop Sec | 79.67 | -5 | 16 | -1 | -16 | $ 1,741,067,396.40 |
BBOZ | Beta Aust Str Bear | 5.86 | -7 | -32 | 2 | -32 | $ 324,715,500.00 |
MVA | Vaneck Property | 21.29 | -7 | 16 | -1 | -19 | $ 413,319,333.96 |
China’s COVID-19 recovery flowing through to ASX ETFs
Jamie Hannah, Van Eck’s Deputy Head of Investments & Capital Markets, thinks the growth seen in China focused ASX ETFs is probably a story of China’s strength.
“I think that China had COVID at the start and recovered a lot quicker than the rest of the world,” he told Stockhead.
“So they were they were able to capitalise on it and really drive their economies harder than the rest of the world.
“And it’s flowed into the performance underlying shares and hence the strong performance. Particularly new technology, healthcare and discretionary consumer areas have been driven hard,” he said.
“And I think that’s continued into the new year. I know they’ve got some new cases but all the macro data is good compared to the rest of the world.”
Chinese investing driving asset prices
Hannah thinks strength will continue to be found in China. Even if diplomatic tensions mean businesses struggle to expand beyond the local market.
“Obviously they [China] have their mega tech companies, Alibaba and Tencent,” he said.
“But China’s over a billion people and their market is heavily driven by local investors.
“The Chinese are big investors into their local stock market and they’ve been confident to continue to invest in the last year and a lot of that has been reflected in rising asset prices.”
“You need to put it into perspective that as China, being the second biggest economy in the world and it could be the largest – their population and local companies are behemoths in comparison to Australian companies.”
“As these companies do well it flows into the market, the global economy and we’re seeing these returns continue.”
Individual Chinese companies performing well
Another thematic appealing to investors in China-focused ASX ETFs were the performances of some individual Chinese companies.
“You’ve got these big companies that have some company-specific tailwinds behind them,” explained Morningstar’s Matt Wilkinson.
“Tencent has been going well and Alibaba has started to rebound after falling significantly for 4-5 months. Initially it fell because the Ant Financial IPO was pulled and Jack Ma went missing.”
However, recent news reports indicate Jack Ma has turned up.
“I don’t think Ant is back on the market but at least there’s some uncertainty removed now that he’s reappeared,” Wilkinson said.
He added that the individual company thematic was true among broader Asia themed ASX ETFs. He named the electronics industry as an example, with two such companies being Taiwan Semiconductor (TPE:2330) as well as Korean electronics giant Samsung (KRX:005930).
Of course, Asia is not the only region with growing companies but the countries more heavily hit by COVID-19 were being propped up by stimulus.
“The Asian markets have dealt better in terms of economic recovery – the economic numbers out of Asia have been strong, particularly China, overall,” Wilkinson said.
“And the Western economies – Europe, UK and the US – are largely relying on stimulus to propel investor sentiment.”
Greater focus on emerging markets
Stockhead also spoke with Kanish Chugh, head of distribution at ETF Securities.
While his company was not a manager of those ASX ETFs focused on China, he noted there was increased interest in emerging markets generally including China.
“What we have seen since the [US] election, the Biden inauguration and shift from a Trump presidency to a Biden presidency, there has been a greater focus on emerging markets,” Chugh said.
“There’s belief that we could see a new investment and market rally and some of the Asian markets did drag a bit with the COVID impact.”
“China was probably an outlier in that space. Last year, the perception is they had a handle on COVID and we saw quite a lot of interest in China and their recovery trade.”
India the next China?
One emerging market that Chugh’s firm does have ETFs focused on is India – with the ETFS Reliance India Nifty 50 ETF (ASX:NDIA).
The ETF tracks India’s Nifty 50 Index and is up 20 per cent in the last six months.
Chugh noted that India is often branded as the ‘Next China’ and investors are interested. He revealed he visited the country for himself on a trip with institutional clients early last year before COVID-19 hit.
“It was positive to see some of the developments occurring,” he said.
“One thing I took away from it and the clients I took along with me, they all took this away: India will be somewhere you need to invest but not for a short term gain.”
As a general rule, ASX ETFs with a broader Asia focus tend to have less focus on India, with a higher weighting allocated to China.
“If you look at a broad Asian equities ETF, the India exposure is anywhere from 8 to 10 per cent and you’ve got about 40 per cent into China,” Chugh said.
“There’s a lot of potential, so if you want to have exposure to have that equal footing you need to overweight it (India) with a single country ETF because you won’t get that exposure via a broad product.”
The views, information, or opinions expressed in the interviews in this article are solely those of the interviewees and do not represent the views of Stockhead. Stockhead does not provide, endorse or otherwise assume responsibility for any financial product advice contained in this article.
Read MoreChinaExchange Traded Fund - ETF
Featured Companies
- ASX: NDIA ETFS Reliance India Nifty 50 ETF
- ASX: CETF VanEck Vectors FTSE China A50 ETF
- ASX: IZZ iShares China ETF
- ASX: ASIA BetaShares AsiaTech Tigers ETF
- ASX: IAA iShares Asia 50 ETF
You might be interested in
Experts
Keen to ride the Asia tech boom? This ASX-listed ETF might be one to look at
| Eddy Sunarto
News
Honey, I shrunk the kids ...and the GDP: China's population dive amplifies Beijing's delusions in Davos
| Christian Edwards
News
Why Aussie ETF providers reckon you need an 'all-weather' portfolio in 2024
| Nadine McGrath
Sponsored Articles
Featured Articles
- Mining Koba turns heads with likely pivot into world-class South Australian uranium district
- Mining GTI Energy drives growth and development of Wyoming ISR uranium resources with new leadership appointment
- Mining QEM to sell Julia Creek renewables project to experienced renewable energy developer EGPA
Don't be the last to know
Get the latest stock news
and insights straight to your inbox.
"*" indicates required fields
By proceeding, you confirm you understand that we handle personal information in accordance with our PrivacyPolicy.
Featured Companies
- ASX: NDIA ETFS Reliance India Nifty 50 ETF
- ASX: CETF VanEck Vectors FTSE China A50 ETF
- ASX: IZZ iShares China ETF
- ASX: ASIA BetaShares AsiaTech Tigers ETF
- ASX: IAA iShares Asia 50 ETF
Editor's Picks
- Canada Unearthed: A gold breakout is coming, says Sprott. Where are all the good precious metals stocks?
- MoneyTalks: Tribeca's Guy Keller doesn't ask why uranium could hit US$175/lb ... he asks why not?
- High Voltage: Nickel down in dumps, but PLS throws lithium narrative a bone
- Why Aussie ETF providers reckon you need an 'all-weather' portfolio in 2024
- Meet the ASX juniors pouring into ionic rare earths projects in Brazil
I am a financial markets enthusiast with a deep understanding of exchange-traded funds (ETFs) and a focus on the Asia-Pacific region. My knowledge encompasses various sectors, including technology, healthcare, and discretionary consumer areas. I have closely followed the performance of ASX-listed ETFs, particularly those with exposure to China.
Now, let's delve into the information provided in the article:
The article discusses the top-performing ASX Exchange Traded Funds (ETFs), with a notable trend of strong performance among funds focused on China and the broader Asian region. Here are some key concepts from the article:
-
Top Performing ASX ETFs:
- Notable performers include Betashares’ AsiaTech Tigers ETF (ASX: ASIA), Ishares’ Asia 50 ETF (ASX: IAA), Ishares’ China ETF (ASX: IZZ), and Van Eck’s China A50 ETF (AS: CETF).
- Betashares’ AsiaTech Tigers ETF (ASX: ASIA) stands out, boasting an impressive 80% gain in the last year.
-
Common Theme – Exposure to China:
- A significant number of top-performing ETFs have exposure to China.
- Some ETFs are exclusively focused on China, while others have broader regional themes that inevitably include Chinese companies.
-
Reasons Behind China's Strong Performance:
- Jamie Hannah, Van Eck’s Deputy Head of Investments & Capital Markets, attributes the growth in China-focused ASX ETFs to China's quick recovery from COVID-19.
- China's ability to capitalize on its recovery has driven its economies, particularly in technology, healthcare, and discretionary consumer areas.
-
Individual Chinese Companies' Performance:
- Individual Chinese companies, such as Tencent and Alibaba, have contributed to the strong performance of China-focused ETFs.
- Tencent and Alibaba, in particular, have shown positive momentum, with Alibaba rebounding after a period of decline.
-
Interest in Emerging Markets:
- There is increased interest in emerging markets, with a focus on China and other Asian economies.
- Kanish Chugh, head of distribution at ETF Securities, notes a greater focus on emerging markets since the US election and the shift from a Trump presidency to a Biden presidency.
-
India as the 'Next China':
- While China remains a key focus, there is also interest in emerging markets like India.
- ETFs such as ETFS Reliance India Nifty 50 ETF (ASX: NDIA) have gained attention, with India being considered as the 'Next China.'
-
Diversification in ETFs:
- ETFs with a broader Asia focus tend to have less exposure to India and a higher weighting allocated to China.
- Diversification strategies include single-country ETFs to gain exposure to specific markets.
-
Market Recovery and Economic Numbers:
- Asian markets, particularly China, have shown better economic recovery compared to Western economies (Europe, UK, and the US).
- Stimulus measures are playing a role in propelling investor sentiment in Western economies.
In summary, the performance of ASX ETFs, especially those with exposure to China, reflects the economic recovery and strength of the Asian markets. The article provides insights into the factors driving the success of these ETFs, including China's quick recovery from the pandemic and the positive performance of individual Chinese companies. Additionally, there is a growing interest in emerging markets, with a focus on India as a potential investment opportunity.