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Archive for the ‘emerging markets’ Category

Emerging market investments offer possibility of higher returns while being highly volatile. Investors therefore include emerging markets ETFs inside their ETF portfolio. A trendy emerging market ETF is iShares MSCI Emerging Markets Index Fund (EEM).

Regional emerging markets ETFs like iShares MSCI Eastern Europe Index Fund (ESR) and iShares S&P Latin America 40 Index Fund (ILF) offer contact with different geographic segments.

Now a new ETF is now intended for investment specifically in Southeast Asia… the world X FTSE ASEAN 40 ETF (ASEA). The ETF seeks to track the price and yield performance of stocks included in the FTSE ASEAN 40 Index.

ASEAN

In 1967 Indonesia, Malaysia, the Philippines, Singapore and Thailand formed a monetary bloc called the Association of Southeast Asian Nations (ASEAN) to market economic growth through free trade amongst those countries. Ever since then, ASEAN has expanded and currently includes Brunei, Cambodia, Laos, Myanmarand Vietnam.

Benefits & Risks of ASEAN ETF

The Global X ASEAN ETF invests inside 40 largest companies within the five founding member nations of ASEAN. The ETF currently gets the following weightings: Singapore 41%, Malaysia 33%, Indonesia 15%, Thailand 11%, and also the Philippines 1%.