Insights

Why is the BetaShares Asia Technology Tigers ETF (ASX:ASIA) struggling this month?

This popular ETF has been struggling in November.
The post Why is the BetaShares Asia Technology Tigers ETF (ASX:ASIA) struggling this month? appeared first on The Motley Fool Australia. –

Investors in the BetaShares Asia Technology Tigers ETF (ASX: ASIA) would be fairly used to getting a performance that bests the S&P/ASX 200 Index (ASX: XJO). After all, this is an ASX ETF that has managed to give investors an average return of 24.4% per annum over the past 3 years. In contrast, the iShares Core S&P/ASX 200 ETF (ASX: IOZ), an index fund that tracks the ASX 200, has returned an average of 22.8% per annum over the same period.

Over November thus far, the ASX 200 has gone backwards by roughly 0.6%. So we can see this trend continuing somewhat, seeing as the ASIA ETF has given its investors a return of 1.42% over the same period. But it hasn’t all been smooth sailing. ASIA spent the first half of the month giving its investors the kind of returns they might be used to, shooting up more than 7% by 17 November.

But since then, it has been a different story. At the end of that particular Wednesday, ASIA units closed at a price of $10.55. On Friday, those same units ended the day at $9.99. That’s a slide of around 5.3%. So it’s fair to say this ETF has spent a good chunk of November on struggle street.

So what might we blame this performance on?

ASIA ETF struggles in November

Well, to dig into that question, let’s check out what kind of investments underpin ASIA’s investing portfolio. Like all share-based ETFs, ASIA is a fund that invests in underlying shares. Unlike an index fund though, this ETF holds a relatively concentrated portfolio of 50 companies. According to BetaShares, these are selected to give investors exposure to “the 50 largest technology and online retail stocks in Asia (ex-Japan).”

So ASIA’s current largest holdings (and their fund weightings) are as follows:

Taiwan Semiconductor Manufacturing Company Ltd, with a weighting of 10.9%

Samsung Electronics, with a weighting of 10.1%

Tencent Holdings Ltd, with a weighting of 9.8%

Alibaba Group Holding Ltd, with a weighting of 8.7%

Meituan, with a weighting of 6.7%

As you can see, even though ASIA already has a relatively concentrated portfolio, its 5 largest holdings make up almost half (46.2%) of this ETF’s portfolio. That means they have a massive influence on how this ETF performs.

So, let’s check out how these stocks have been travelling over November so far.

Taiwan Semiconductors has put on roughly 3% since the end of October.

Samsung is up 3.58%.

Tencent is down 3.66%.

Alibaba has lost a nasty 19.15%.

And Meituan has lost 2.2%.

As you can gather, it’s the Chinese e-commerce giant Alibaba that we can probably blame for ASIA’s struggles over November (particularly the back half of the month). A near-20% decline of an ETF’s fourth-largest holding is going to put a dent in its performance, especially if the other major holdings don’t have an explosive month of gains to make up for it. This is the most probable reason why ASIA has had such a lukewarm month.

The BetaShares Asia Technology Tigers ETF charges a management fee of 0.67% per annum.

The post Why is the BetaShares Asia Technology Tigers ETF (ASX:ASIA) struggling this month? appeared first on The Motley Fool Australia.

Should you invest $1,000 in BetaShares Asia Technology Tigers ETF right now?

Before you consider BetaShares Asia Technology Tigers ETF, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and BetaShares Asia Technology Tigers ETF wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

3 ETFs for ASX investors to buy now

2 fantastic ETFs for ASX investors in 2022

Here’s why the ASIA (ASX:ASIA ETF share price is in focus on Thursday

2 excellent ETFs for ASX investors to buy today

Here’s a highly rated tech ETF for ASX investors in November

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BetaShares Asia Technology Tigers ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!