Asia Pacific ETF

This Asia Pacific ETF is a somewhat peculiar one. I regard this regional ETF as an Asian ETF although Australia and New Zealand are included as well. It is called “Asia/Pacific” so that pretty much sums up its scope. 

First and foremost, many Asian countries are not included in this Asia Pacific ETF. As this ETF is regarded  to track  the “developed” Asian economies only South Korea, Hong Kong and Singapore are included. Japan of course is another very developed Asian country but this Asia Pacific ETF explicitly excludes companies based in Japan.

This is exactly the reason I follow this particular Asia Pacific ETF on a daily basis as Japan has evolved in much more a typical Western economy with an economy that does not show high growth rates anymore.

Due to a gigantic burden of debt Japan is struggling for years and although Japanese companies may be interesting it is difficult to compare them to the companies based in Hong Kong, Korea and Singapore.

Vanguard FTSE developed Asia Pacific ex Japan UCITS ETF

With a 40% share in this ETF Australia occupies the number 1 position here, followed by Korea and Hong Kong with a 25% share. Singapore takes up 10% of this ETF and New Zealand companies play more or less a minor role.

Market sectors in this ETF show a balanced spread. You will find many financial corporations (typical for regional ETF’s) and the company with the largest weighing of the total number of 350 publicly traded companies is Samsung.

This particular Asia Pacific ETF is ideal for investors that are willing to invest in specific regions. For me personally this ETF is a very interesting one and I am particularly favorable for its long term perspectives.

Vanguard chose to offer a physical ETF so it holds the underlying stocks. It is also quoted on the Amsterdam Stock Exchange and it is easy one to trade in. 

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