Invest in megatrend ETFs designed to benefit from the rapid growth, new technology and newly affluent consumers in Asia and across emerging markets
Emerging markets and global wealth megatrends investing – The world economy is set to shift as Asia becomes the largest trading region, fueling the rise of a mass affluent community and a new breed of corporations. Just two countries, China and India, will account for 35% of the world’s population and 25% of global GDP. We will see a restructuring of the global economy with non-OECD economies expected to account for 57% of GDP by 2030. The economic influence of the G7 countries will shift to the Emerging 7 countries. By 2040 the E7 economies will be double that of the G7.1
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Emerging markets ETFs
These ETFs invest primarily in stocks of companies in multiple emerging markets in Europe, Asia, Africa, Central and South America and the Middle East.
The sectors with highest weightings percentages are Technology, Communication Services, Consumer Cyclical and Financial Services. Morningstar defines the first two as sensitive and the last two as cyclical super sectors.
Top stock holdings in these ETFs are companies like Alibaba, Tencent and Samsung. Although this differs per ETF.
iShares MSCI Emerging Markets ETF (EEM)
iShares Core MSCI Emerging Markets ETF (IEMG)
Schwab Emerging Markets Equity ETF (SCHE)
China ETFs
These ETFs invest primarily in stocks of companies in China.
The sectors with highest weightings percentages are Communication Services, Consumer Cyclical and Financial Services. Morningstar defines the first one as sensitive and the last two as cyclical super sectors.
Top stock holdings in China ETFs are companies like Alibaba, Tencent and China Construction Bank. Although this differs per ETF.
iShares China Large-Cap ETF (FXI)
iShares MSCI China ETF (MCHI)
ProShares Ultra FTSE China 50 (XPP)
Direxion Daily FTSE China Bull 3X Shares (YINN)
1 Sydney Business Insights