Taiwan has recently opened up a whole new can of competition for ETFs opening to its doors to ETF providers, which was once exclusive to FTSE. This enables many investors to have several ETF options and a diversified portfolio.
One problem that is systemic in Asia is the regulations that stem across borders. In some nations, the regulations make it lax for ETFs to launch, such as Singapore and Malaysia. In others, there are a lot of challenges, such as in Taiwan and the Philippines.
A second problem that arises in Asia is the difference in time zones in which the stock exchanges trade. The Association of Southeast Asian Nations (ASEAN) is trying to alleviate this predicament by establishing an ASEAN board where investors from different countries can invest across each of the markets. This will be tough to get running, though. One major problem that investors will have to overcome is the limitation of funds that can be invested outside of his home country, which is a regulation imposed by the majority of Asian nations.
Kevin Grewal contributed to this article.