Richard Drury
iShares MSCI All Country Asia ex Japan ETF (NASDAQ:AAXJ) is a $2.44 billion fund incepted in August 2008 (ouch!) as a way to give investors exposure to major Asian markets like India, China, Indonesia, South Korea, and half a
AAXJ: Not For Now, Let The Global Markets Settle
Summary
- iShares MSCI All Country Asia ex Japan ETF focuses on emerging markets like India, China, and South Korea, excluding Japan due to its developed market status.
- AAXJ has underperformed long-term, delivering only 16.3% five-year total return, but has recently outperformed the S&P 500.
- The ETF's top holding, Taiwan Semiconductor, faces risks from geopolitical tensions, while its financials and consumer discretionary sectors have driven recent gains.
- I rate AAXJ a Hold due to overdiversification; recommend FXI for China and EWY for South Korea for more targeted exposure.
A freight forwarding professional with over 20 years in the industry, I am an enthusiastic market participant with a flair for picking gems from the general rubble. My industry experience has given me insights into human behavior, investment psychology, and the need to make money work for you instead of against you. My ideas on investing are often contrarian, and the level of due diligence I apply to each of my research projects give my audience the right information at the right time.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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