Jonathan Bernstein of ETF Zone illustrates the strength in Asian exchange traded funds. Asian ETFs have outperformed domestic markets on a 1, 2 and 5-year return basis. The performance of single country ETFs in Asia are up about 50% for the past year, compared to 10-15% for S&P Depositary Receipts (SPY) or the Diamonds Trust (DIA). The cause for this performance could be related to a weakening dollar compared to Asian currencies.
The chart below shows the growth of single country Asian ETFs over the last year. Year-to-date these countries have also performed well. iShares MSCI Korea (EWY) is up 13%, iShares FTSE/Xinhua China 25 (FXI) increased 33%, iShares MSCI Japan (EWJ) grew 9%, iShares MSCI Singapore (EWS) 17%, and iShares MSCI Malaysia (EWM) is up 14%.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.