ETFs are an easy and safe way to invest in various companies around the world, with portfolio managed by professional team of experts. Fortunately, there is a quite wide range ETF funds on eToro (mostly iShares from Blackrock). In current bull market they perform very well and I actually expanded my portfolio by buying more of these funds, which now cover about 1/3 exposure of my portfolio and I advise you do the same. I’ve previously posted my views on these funds on eToro feed and I’m now collecting and updating it in this article. Each ETF reviewed has YTD return provided as of 13-Sep-2017. I also recommend going x1 leverage with ETFs only as it would give you optimal result and acceptable risk. So here they are – my favourite top ETFs listed on eToro:
$FXI – iShares China Large-Cap
$FXI is one of the best performing and also stable ETFs to buy. If you are interested in this ETF and want to know more, here’s what you are getting by buying $FXI:
- It consists large-capitalization Chinese shares, that trade on the Hong Kong Stock Exchange. But they are really, really large. For example, one of the largest exposition in $FXI has China Mobile LTD. This largest mobile phone services provider has 859 million customers – more than entire Europe population, and employs 460 000 employees – can you imagine the scale? There are also largest Chinese (state owned) banks, like Bank of China, construction companies, oil companies – all with billions USD turnover.
- What’s important, these companies are not private, but state owned and controlled by Party members, and are never vulnerable to any crisis – because they can’t fall.
- It gained 12,87% Year-to-today, with very stable and “boring” growth – as befit big companies.
I highly recommend it, especially now, that China has revised their great target economic growth to 6,5% – there’s not one developed country that has such big growth.
YTD return: + 26,25%
$IDEM – iShares MSCI EM UCITS ETF USD
$IDEM.L is great performing ETF that invests in lucrative emerging markets like China, South Korea, India, Poland. If you are interested in this ETF and want to know more, here’s what you are getting by buying $IDEM.L:
- Best companies with good growth from emerging markets – mostly China (27,62% exposure), South Korea (15,44%), Taiwan (12,26%), India (8,95%) and 10 other countries.
- These companies are chosen mostly from modern sectors like Information Technology (26,3%), Financial (23,4%), Consumers (10%). So it consists of strong assets like Samsung, Alibaba, China Mobile, China Life Insurance – taken from regional and not US stock market.
- These are big companies, leaders of the market with millions of customers, and so it earns adequately from their shares. From 30/Jun/2016 to 30/Jun/2017 this ETF gained 22,92%. With dynamic growth in emerging markets (although I’m not sure if we still should call China “emerging”, as it will overtake US in 2020 as largest economy in the world), 2017 would be as good as 2016 if not better!
I recommend to buy it now.
YTD return: + 29,28%
$EWT – iShares MSCI Taiwan Capped ETF
$EWT is one of the best performing ETF to buy, investing in Taiwanese companies. If you are interested in this ETF and want to know more, here’s what you are getting by buying $EWT:
- It consists large-capitalization Taiwanese shares and Taiwan (which actually calls itself “real” Republic of China, opposite to People’s Republic of China) is one of the richest Asian country, is one of the “Four Asian Tigers”, and its economic transformation was called Taiwan Miracle. China could be second Taiwan too – if only they would transform into full capitalism.
- $EWT tracks large and mid-sized companies in Taiwan picked from the best performers, like TAIWAN SEMICONDUCTOR MANUFACTURING (one of the largest producers of CPUs worldwide), MEDIATEK (another producer of chipsets, mostly for Chinese smartphones), ASUSTEK (Asus electronics brand), CHINA STEEL CORP.
- Its results speak for itself: It had 31,30% return since year (look below how stable was its growth)
I highly recommend it if you want to invest in Taiwan. XXI-century will be Asian century, because East Asians have now healthy economy, huge consumer base and traditional values of work and diligence.
YTD return: + 25,17%
$IAPD.L – iShares Asia Pacific Dividend UCITS ETF
$iapd.l is great performing ETF that invests in top securities from Asia Pacific region (more of a Eastern Pacific actually). If you are interested in this ETF and want to know more, here’s what you are getting by buying $iapd.l:
- It consists of large cap 30 companies from New Zealand, Singapore and Australia. These markets are even more exotic than China or Japan and have similar great profitability. You can diversify your portfolio nicely and it’s a rare chance to invest in shares from this region.
- Sectors covered are mostly financial, consumer goods, real estate and more, so profitable stuff only. What companies are included in its portfolio? For example Spark New Zealand – larges NZ telecom company, National Australia Bank – one of the four largest financial institutions in Australia and Singapore Post – national post of Singapore. With such large companies, this investment is almost without risk.
- It had total return of 20.46% in 2016 and it’s on track to get even better performance this year.
I highly recommend it if you want to invest in stocks from New Zealand, Singapore and Australia.
YTD return: + 12,61%
And do you have your favorite ETF that you can recommend? Let us know in comments!