State Street SPDR S&P Emerging Asia Pacific ETF

GMF

Market cap $396M

As Trump and Xi are expected to meet at the APEC Summit, optimism grows for Asia-Pacific Emerging ETFs poised to gain from a U.S.-China trade thaw.

Among APAC equity markets, Australia has a higher beta to oil prices while India, Indonesia and Thailand have lower betas. Domestic political uncertainties have been one main reason for the decoupling trend seen in Indonesia and Thailand.

Wall Street investors have been paying close attention to the growth in Asia. In 2023, despite various challenges in the region, especially in China's real estate sector, stocks in a number of countries saw double-digit returns.

While the China macro story of ongoing transition is a headwind to the rest of Asia, there is more to the region's economic health than this.

The total nominal GDP of the ten ASEAN nations measured in US dollar terms amounted to USD 3.6 trillion in 2022, more than doubling compared with total GDP of USD 1.6 trillion in 2009. Singapore's GDP growth rate improved to a pace of 2.8% y/y in the fourth quarter of 2023 according to the advance estimate of GDP from the Ministry of Trade and Industry (MTI).

With moderating inflation levels in most Asian countries and great growth potential in the medium to long term, investing in Emerging Asian countries can prove beneficial.