Investing in Asia or in emerging countries is a good strategy. What is even better is to invest in Pacific/Asia stocks. This is because it gives investors a comparatively wider investment range, as such portfolios can invest throughout the Pacific Rim, including in New Zealand and Australia. Moreover, investment in the Asia-Pacific region helps to diversify a portfolio by investing across developed and emerging financial markets. If you are also interested in investing in these regions, then here are the top diversified Pacific/Asia funds and ETFs.
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Top Diversified Pacific/Asia Funds and ETFs
To rank the top diversified Pacific/Asia funds and ETFs we have used their one-year data from U.S. News.
Vanguard Pacific Stock Index Fund (VPACX, 32%)
VPACX tracks the performance of a benchmark index that considers the returns of the companies operating in the Pacific region. It invests all its assets in the common stocks of the companies’ part of the FTSE Developed Asia Pacific All Cap Index. It has a net expense ratio of 0.23%. VPACX has returned 5.64% over the last three years and 12.07% over the past five years.
First Trust RiverFront Dyn Asia Pac ETF (RFAP, 39%)
RFAP’s objective is to ensure capital appreciation. Normally, the fund invests a minimum of 80% of its net assets in the equity securities of "Asian Pacific companies." It has a net expense ratio of 0.83% and net assets of $8.84 million. RFAP has a year-to-date return of 2.81%. This fund has invested more than half of its net assets in Japan. More than 30% of its assets are in the Industrials and Financial Services sectors.
IPAC tracks the investment performance of the MSCI Pacific IMI index, which includes securities from Australia, Hong Kong, Japan, New Zealand and Singapore. The fund normally invests at least 90% of its assets in the securities listed in the underlying index. It has a net expense ratio of 0.09% and net assets of $1.18 billion. IPAC has a year-to-date return of 4.88%.
DVYA tracks the performance of the Dow Jones Asia/Pacific Select Dividend 50 Index. This index tracks high dividend-paying companies in Japan, New Zealand, Australia, Hong Kong and Singapore. The fund invests a minimum of 90% of its assets in securities in the underlying index. It has a net expense ratio of 0.49% and net assets of $45.26 million. DVYA has a year-to-date return of 10.62%.
Matthews Asia Dividend Fund (MAPIX, 44%)
MAPIX primarily invests in companies that pay dividends, especially those that are known to increase their dividend payments. As of March 29, 2021, the fund has invested its total assets of $5.41 billion in 70 different holdings in the Asia Pacific region. It has a net expense ratio of 1.02%. MAPIX has returned 8.61% over the last three years.
Fidelity® Pacific Basin Fund (FPBFX, 48%)
FPBFX’s objective is to seek capital growth over the long term. Normally, the fund invests a minimum of 80% of its assets primarily in the common stock of Pacific Basin issuers. It has a net expense ratio of 1.1%. FPBFX has returned 13.78% over the last three years, 18.02% over the last five years, and 11.19% over the past decade.
Columbia Pacific/Asia Fund (CASAX, 49%)
CASAX invests both in emerging Asia stocks and mature companies in developed Asia. As of March 29, it has invested its assets of $131.23 million in 72 different holdings. Currently, the fund’s portfolio consists of large-cap stocks in the industrial materials and financial services sectors. It has a net expense ratio of 1.52%. CASAX has returned 13.07% over the last three years and 18.13% over the last five years.
Vanguard FTSE Pacific ETF (VPL, 50%)
VPL tracks the performance of a benchmark index that measures the return of stocks located in the Pacific region. The fund uses an indexing investment approach and invests in stocks that are part of the FTSE Developed Asia Pacific All Cap Index. It has a net expense ratio of 0.08% and net assets of $548 billion. VPL has a year-to-date return of 5.51%.
Matthews Asia Growth Fund (MPACX, 63%)
This fund doesn’t hesitate to invest in small- and mid-cap companies. As of March 29, MPACX has assets totaling $2.29 billion invested in 73 different holdings. At the time of the 2008 financial crisis, fund managers reduced their holdings to just 50 names. MPACX has a net expense ratio of 1.08% and has returned 16.83% over the last three years and 19.52% over the last five years.
