Regional ETFs offer investors targeted exposure to specific countries or regions, providing investors with the ability to diversify portfolios and capture the growth potential of different economies. Many of the funds track indices focused on specific geographic areas and are a popular choice for investors aiming to capitalise on macroeconomic trends or tap into regional growth opportunities.
For example, an investor looking to capitalise on growth in China may look to the iShares China Large-Cap ETF. Below are some prominent regional ETFs, including their focus areas and potential benefits.
iShares MSCI Japan ETF (EWJ) Price & Chart
Focus: Large and mid-sized Japanese stocks.
iShares MSCI Japan ETF (EWJ) Performance:
| Year | Performance |
|---|---|
| 2024 | +6.80% |
| 2023 | +19.78% |
| 2022 | -17.36% |
| 2021 | +1.56% |
| 2020 | +14.03% |
Overview: The iShares MSCI Japan ETF is a fund to consider for those seeking exposure to Japan’s large and mid-cap companies. This ETF tracks the track the investment results of an index composed of Japanese equities, covering sectors such as industrials, technology, consumer discretionary and more. Given Japan’s economic status, the ETF is attractive for investors looking to benefit from the country’s advanced manufacturing and export-driven economy.
Some of the top companies in the index include Toyota Motor, Sony, Hitachi and Fast Retailing.
Japan’s economy has shown resilience despite global uncertainties, supported by government policies aimed at stimulating domestic consumption and exports. The ETF currently holds 191 stocks, with the top 10 making up over 28% of the total weighting.
iShares China Large-Cap ETF (FXI) Price & Chart
Focus: 50 of the largest Chinese companies that trade on the Hong Kong Stock Exchange
iShares China Large-Cap ETF (FXI) Performance:
| Year | Performance |
|---|---|
| 2024 | +30.10% |
| 2023 | -12.87% |
| 2022 | -20.40% |
| 2021 | -21.04% |
| 2020 | +10.06% |
Overview: For investors targeting China’s economic powerhouse, the iShares China Large-Cap ETF is one to assess further. This ETF focuses on sectors like consumer discretionary, financials, communication, and information technology, reflecting the backbone of China’s economic structure.
Despite recent challenges, such as regulatory pressures and slowing growth, China remains a pivotal player in the global economy. The ETF provides exposure to companies such as Alibaba, Tencent, and China Construction Bank, which are central to China’s long-term development plans. The fund’s top 10 stocks account for 58.95% of the total weighting. Investors with a higher risk tolerance aiming to capture potential upside in one of the world’s most dynamic economies may prefer the ETF.
iShares MSCI Brazil ETF (EWZ) Price & Chart
Focus: Large and mid-sized companies in Brazil
iShares MSCI Brazil ETF (EWZ) Performance:
| Year | Performance |
|---|---|
| 2024 | -29.93% |
| 2023 | +31.78% |
| 2022 | +13.23% |
| 2021 | -17.61% |
| 2020 | -19.78% |
Overview: The iShares MSCI Brazil ETF provides investors with exposure to one of the largest economies in Latin America. The ETF holds large and mid-sized companies listed in the country, including Nu Holdings, Itau Unibanco, Ambev and Petroleo Brasileiro. The fund holds 49 stocks, with the top 10 names making up 56.72% of the weighting.
Brazil’s natural resource wealth, including oil, iron ore, and agriculture, underpins its economic strength, making the ETF particularly attractive to those seeking exposure to commodities.
This fund seeks to track the investment results of an index composed of Brazilian equities, with the main sectors including Financials, Energy and Materials. The ETF offers significant growth potential, but investors should be aware of Brazil’s political and economic volatility.
iShares MSCI Taiwan ETF (EWT) Price & Chart
Focus: Large and mid-sized companies in Taiwan
iShares MSCI Taiwan ETF (EWT) Performance:
| Year | Performance |
|---|---|
| 2024 | +16.79% |
| 2023 | +29.15% |
| 2022 | -28.75% |
| 2021 | +28.38% |
| 2020 | +32.41% |
Overview: The iShares MSCI Taiwan ETF focuses on Taiwan’s export-driven economy, heavily centred on the technology sector. The majority of the ETF (64.53%) is made up of information technology stocks. Financials comes in a distant second at 17.39%. The fund tracks an index composed of Taiwanese equities, which includes major companies like Taiwan Semiconductor Manufacturing Company (TSMC), one of the world’s largest chipmakers. Mediatek and Hon Hai Precision are just two of the other prominent names featured.
The ETF holds 90 companies in total, with the top 10 stocks making up 47.45% of the total weighting. Taiwan plays a crucial role in global supply chains, particularly in the electronics and semiconductor industries. This ETF is a potential choice for those seeking exposure to technology and innovation. However, geopolitical risks and trade tensions should be considered when investing in Taiwan-focused funds.
iShares MSCI Germany ETF (EWG) Price & Chart
Focus: Large and mid-sized German stocks
iShares MSCI Germany ETF (EWG) Performance:
| Year | Performance |
|---|---|
| 2024 | +10.32% |
| 2023 | +22.9% |
| 2022 | -22.17% |
| 2021 | +4.85% |
| 2020 | +11.34% |
Overview: The iShares MSCI Germany ETF seeks to track the investment results of an index composed of large and mid-sized German equities. Germany is the largest economy in Europe, known for its robust industrial base, particularly in automotive manufacturing, engineering, and pharmaceuticals.
The ETF holds 56 stocks, including major names such as Adidas, Mercedes-Benz, Deutsche Telekom, Siemens, Allianz, and SAP. The top 10 names in the ETF make up 60.5% of the total weighting. The primary sectors represented in the fund are Industrials, Information Technology, Financials, and Consumer Discretionary.
Investors favour this ETF for its access to Germany’s export-driven economy and its resilience within the European Union. While challenges such as energy costs and global demand fluctuations may impact performance, the ETF may be a solid choice for long-term exposure to Europe’s largest economy.
iShares MSCI Hong Kong ETF (EWH) Price & Chart
Focus: Large and mid-sized companies in Hong Kong
iShares MSCI Hong Kong ETF (EWH) Performance:
| Year | Performance |
|---|---|
| 2024 | +0.10% |
| 2023 | -14.04% |
| 2022 | -6.72% |
| 2021 | -3.43% |
| 2020 | +4.64% |
Overview: The iShares MSCI Hong Kong ETF provides targeted access to the Hong Kong market, tracking a basket of equities listed in the region. It offers exposure to this vital financial hub. Hong Kong’s economy relies heavily on financial services, property development, and trade, with the ETF’s portfolio reflecting these key sectors.
The ETF is smaller than some of the others listed, holding 28 stocks, including companies such as AIA Group, Hong Kong Exchanges and Clearing (HKEX), Techtronic Industries, CLP Holdings and Sun Hung Kai Properties. The main sectors represented in the ETF include Insurance, Financial Services, and Real Estate Management & Development.
Investors interested in Hong Kong often view it as a gateway to China while benefiting from its well-established financial infrastructure and stable regulatory environment.
Invesco India ETF (PIN) Price & Chart
Focus: FTSE India Quality And Yield Select Index
Invesco India ETF (PIN) Performance:
| Year | Performance |
|---|---|
| 2024 | +9.10% |
| 2023 | +22.81% |
| 2022 | -9.46% |
| 2021 | +23.72% |
| 2020 | +18.54% |
Overview: The Invesco India ETF is based on the FTSE India Quality And Yield Select Index and normally invests at least 90% of its total assets in securities that comprise the Index as well as American depositary receipts and global depositary receipts. The Fund is rebalanced and reconstituted semi-annually.
It includes 203 companies across the NSE and BSE, with some of the largest being HDFC Bank, Reliance Industires, Infosys ICICI Bank and Tata Consultancy Services. Financials is the primary sector represented at 21.62%, with Information technology stocks not too far behind at 13.85%.
The ETF provides investors access to one of the fastest-growing major economies globally. India’s young population, expanding middle class, and government initiatives are expected to contribute to its long-term growth prospects. While the fund offers significant growth potential, investors should be mindful of currency fluctuations and policy risks.
iShares MSCI Singapore ETF (EWS) Price & Chart
Focus: Large and mid-sized companies in Singapore
iShares MSCI Singapore ETF (EWS) Performance:
| Year | Performance |
|---|---|
| 2024 | +22.53% |
| 2023 | +5.27% |
| 2022 | -9.15% |
| 2021 | +5.22% |
| 2020 | -8.19% |
Overview: The iShares MSCI Singapore ETF provides investors with exposure to large and mid-cap companies in Singapore, tracking an index of Singaporean equities. These equities are mainly made up of Financials (42.77%), Industrials (20.70%), and Communication stocks (16.56%).
The top names in the ETF include DBS Group, Oversea-Chinese Banking, Sea, United Overseas Bank, Singapore Telecommunications and Singapore Airlines.
Singapore is a highly developed and diversified economy in Southeast Asia. Its strategic location makes it a global hub for finance, trade, and logistics, with key holdings in the financial and real estate sectors.
iShares MSCI South Africa ETF (EZA) Price & Chart
Focus: Large and mid-sized companies in South Africa
iShares MSCI South Africa ETF (EZA) Performance
| Year | Performance |
|---|---|
| 2024 | +6.39% |
| 2023 | +1.31% |
| 2022 | -4.44% |
| 2021 | +7.44% |
| 2020 | -4.68% |
Overview: The iShares MSCI South Africa ETF focuses on the largest economy in Africa, providing exposure to a diverse range of industries, including mining, financials, and telecommunications. The ETF tracks the MSCI South Africa Index, which features leading companies like Naspers, Sasol, and Standard Bank Group.
South Africa’s economy is heavily influenced by its natural resources, particularly gold and platinum, making this ETF a suitable choice for investors interested in commodities. However, political and economic instability in the region may contribute to higher volatility.
iShares MSCI Malaysia ETF (EWM) Price & Chart
Focus: Malaysian Large and mid-sized companies
iShares MSCI Malaysia ETF (EWM) Performance
| Year | Performance |
|---|---|
| 2024 | +20.13% |
| 2023 | -4.01% |
| 2022 | -6.25% |
| 2021 | -6.30% |
| 2020 | +3.26% |
Overview: The iShares MSCI Malaysia ETF provides targeted access to the Malaysian stock market, aiming to track the investment results of a basket of equities listed in the country.
The Southeast Asian economy is known for its strong trade ties, particularly in the electronics and palm oil industries. 44% of the ETF is made up of Financials stocks, with Utilities coming in a distant second at 14.05% and Consumer Staples in third at 10.35%.
Key holdings include companies like Public Bank, Maybank, Petronas Gas, CIMB Group and Tenaga Nasional. For investors looking to capitalise on Southeast Asia’s growth, this ETF provides a potential opportunity with moderate risk.
Why Consider Regional ETFs?
Regional ETFs provide a straightforward way to diversify your portfolio across different geographic areas, allowing investors to tailor their portfolios to align with specific economic trends or growth drivers.
However, it is important to note that the ETFs often come with different risk profiles, influenced by factors like geopolitical issues, economic policies, and market dynamics. As a result, it’s important for investors to conduct thorough research and implement a prudent risk management strategy.
