Investing Port

This ETF offers a way to invest in several promising Asian economies while sidestepping exposure to Japan, a market many see as trapped in a multi-decade stretch of low growth. AAXJ is somewhat unique in that it includes significant exposure to countries across all development levels, from emerging China to quasi-developed South Korea and Taiwan to developed Hong Kong and Singapore. As such, this ETF could be useful for investors building an Asia-centric portfolio, and has the potential to be appealing as a means of implementing a short-term play or as establishing a longer-term tilt towards a region that might be expected to outperform global equity markets.

For an international ETF, AAXJ offers impressive depth of holdings, casting a wide net across several Asian economies. It is noted, however, that the portfolio is tilted heavily towards large cap companies, a common bias present in international equity funds. For those who believe in the growth potential of Asia, AAXJ is an interesting option--as long as you don't mind a heavy dose of mega cap companies.