Asia ETFs: Manufacturing Slowdown Clouds Outlook | ETF Trends

Asia, the world’s fastest-growing region, has shown signs of a slowdown. But it doesn’t necessarily mean you should dump your exchange traded funds (ETFs)

China saw its manufacturing numbers in July slow for the first time since early last year, raising fears that the Asian region is gearing up for a hard time. Aaron Scott for The Wall Street Journal reports that economists don’t seem particularly alarmed, since it’s what they’ve been expecting for some time. They also expect the region to further wind down stimulus.

For the long term, Asia still has votes of confidence from many investors, as  the International Monetary Fund (IMF) states it won’t be long before Asia accounts for roughly one-third of the world’s output.

  • Vanguard Pacific Stock VIPERs (NYSEArca: VPL)
  • BLDRS Asia 50 ADR Index (NYSEArca: ADRA)
  • iShares MSCI All Country Asia ex-Japan (NYSEArca: AAXJ)

When you say “Asia,” the first country that springs to mind is likely China, says Kevin Grewal for Minyanville. But there’s much more beyond that, and these countries could outperform the world’s second-biggest economy.

Singapore grew 18.1% in the first six months of 2010 while China and Taiwan signed a trade agreement that should strengthen both countries. Indonesia’s and Malaysias ETFs have been growth leaders so far this year. [China ETFs Are An Opportunity with a Bit of Risk.]

For more stories about Asia, visit our Asia category. There are many ways to play Asia’s economy with ETFs, including single-country funds and broad regional ETFs. What you choose depends in how much risk you want.

  • iShares MSCI Singapore (NYSEArca: EWS)
  • Market Vectors Indonesia (NYSEArca: IDX)
  • iShares MSCI Taiwan (NYSEArca: EWT)

Tisha Guerrero contributed to this article.

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.