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Any ETF recommendation for Asian / emerging markets?
Investing Strategy
Hi Pearlers, Like most people here, I'm already invested in an Australian ETF + a global ETF. But the underlying holdings are mostly large-cap US stocks and large-cap Australian shares which is not well diversified IMHO. I don't want to complicate the portfolio overly (I'd prefer to have 3 or so ETFs), so do you have any recommendations for low-cost Asian or emerging market ETFs? So far I've seen: - VGE (0.48% p.a., 1,799 companies) - VAE (0.48% p.a, 6,146 companies) - BEMG (0.35% man. fee, 1,186 companies, NO dividend distribution) Looking forward to your recommendations / webpages : )
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Those are the most common/popular ones for sure. Another option that I’ve seen is EMKT. It’s slightly different in terms of using factors, such as value, size, quality, momentum to create the portfolio.
There’s research to suggest this can work out favourably and it’s an interesting approach. Could be worth looking into, but less companies in the portfolio and higher fee.
Happy researching!
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I have too many stocks and ETFs in my portfolio, but specifically for emerging markets I have
IEM – iShares MSCI Emerging Markets ETF – Management fee 0.69%
FEMX – Fidelity Global Emerging Markets Active ETF – Management fee 0.99%
NDIA – India Nifty 50 ETF – Management fee 0.69%
and I used to hold
CNEW – VanEck China New Economy – Management fee 0.95%
Note that CNEW is a much bigger exposure to technology that the above. And there are other Asian economy ETFs that are developed rather than emerging (e.g. ASIA, EWJ (japan))
The management fees for emerging and China markets are higher as the underlying securities are harder to buy in those markets and have special structures. At least that was what I recall from the sales webinars.
Think about what you are wanting from this. There are more risks.
I held CNEW until there were clashes in south china sea and decided China may choose to not honour foreign owned shares.
BRICS (Brazil, Russia, India, China, South Africa) was popular for a while, now is just BIC.
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