The long term, multi-decade-long growth in emerging markets, particularly those in Asia, has created an immense amount of wealth in a relatively short period time.
With few investors fully apprised of the details and intricacies of most non-domestic companies, knowing enough to pick stocks on another continent is simply out of the question for most investors, even the most advanced ones. This is where Exchange Traded Funds (ETFs) come in handy.
One of the best ETFs I like for investors looking for exposure to emerging Asian markets is the SPDR S&P Emerging Asia Pacific ETF (NYSE:GMF). This ETF holds a broad spectrum of companies, with a focus primarily on companies centred in Hong Kong and China.
The long term growth catalysts behind this region are obvious, and for those willing to bet on a continuation of the same trajectory over the long haul, this ETF is a great way to play this trend, particularly for those expecting a relatively quick recovery.
Of course, the big headwind for this ETF and the companies it tracks is the real risk of a ramped-up U.S. and China trade war. The negative rhetoric which has taken hold during the past four years of the Trump presidency has led to a deteriorating trade relationship which has global ramifications on growth, particularly for the Asia Pacific region.
Invest wisely, my friends.
