The fund aims to provide investors with the performance of the S&P Asia 50 Index, before fees and expenses. The index is designed to measure the performance of 50 of the largest Asian companies domiciled in China, Hong Kong, South Korea, Singapore, and Taiwan and listed in Hong Kong, South Korea, Singapore or Taiwan.
The fund aims to provide investors with the performance of the MSCI Emerging Markets Index, before fees and expenses. The index is designed to measure the equity market performance in global emerging markets.
The Global X China Tech ETF (DRGN) offers access to 20 leading Chinese technology companies listed in Hong Kong and Mainland.
PAXX provides a simple and convenient means for investors to gain exposure to an actively managed, diversified portfolio of Asian (ex-Japan) companies across industry sectors.
The Fund provides investors with the potential for long-term capital growth by investing in companies located in India, as well as companies located elsewhere that derive a significant proportion of their earnings from India (Indian Securities).
CNEW gives investors a portfolio of fundamentally sound companies in China having growth prospects in sectors making up ‘the New Economy’, namely technology, health care, consumer staples and consumer discretionary. CNEW aims to provide investment returns, before fees and other costs, which track the performance of the Index.
The Fund aims to provide investors with the performance of the MSCI Emerging Markets ex China Index, before fees and expenses. The index is designed to measure the equity market performance in global emerging markets, excluding China.
The Fund provides investors with the potential for long-term capital growth by investing in a portfolio of emerging market securities. The Fund invests at least 70% of its assets in companies that are listed, headquartered, or do most of their business, in developing markets including countries in Latin America, South East Asia, Africa, Eastern Europe and the Middle East.
Long term investors in Asian listed equities (For Wholesale Investors Only).
To provide investors with high capital growth over the medium to long term (3-5 years) by seeking exposure to the Asian markets (other than the Japan market), adjusted to take into account certain ESG (Environmental, Social and Governance) considerations.
IIND aims to track the performance of an index (before fees, expenses and taxes) comprising a diversified portfolio of the highest quality Indian companies.
The fund aims to provide investors with the performance of the J.P. Morgan EMBI Global Core Index (AUD Hedged), before fees and expenses. The index is designed to measure the AUD hedged performance of U.S. dollar denominated fixed and/or floating rate emerging market bonds issued by sovereign and quasi-sovereign entities.
CETF gives investors exposure to a diversified portfolio comprising the 50 largest companies in the mainland Chinese market. CETF aims to provide investment returns before fees and other costs which track the performance of the Index.
GRIN gives investors a portfolio of fundamentally sound companies in India with the best growth at a reasonable price (GARP) attributes. GRIN aims to provide investment returns, before fees and other costs, which track the performance of the Index.
EMKT invests in a diversified portfolio of large and mid-cap stocks from emerging markets countries. EMKT aims to provide investment returns, before fees and other costs, which track the performance of the Index.
Australia’s domestic equity market accounts for just 2% of global market capitalisation, limiting home-grown growth opportunities. The Asia-Pacific region now hosts 55% of all publicly listed companies worldwide (vs. 20% in the Americas and 25% in EMEA) and represents roughly one third of total global market capitalisation as of 2025. Emerging markets, including many of Asia’s high-growth economies, comprise about 27% of the global equity market.
Source: OECD
In the words of Elizabeth Soon from PineBridge Investments:
‘Asia continues to offer compelling investment potential, benefiting from various opportunity sets across the region. China is shifting from a manufacturer of low-end goods to being a high-end technology producer. Companies are also going global, which leads to the creation of multinational Chinese corporations.'
Asia is expected to be a main driver of global economic growth as described by Krishna Srinivasan, IMF director:
‘(it’s) contributing 60 percent to global growth, is clearly the powerhouse of the global economy.’
Emerging Global Asian Equity Funds and ETFs provide easy and convenient access to the Asian investment opportunity. They are professionally managed, diversified investment vehicles designed to manage currency, political, and market volatility risks on behalf of investors.
They offer exposure to developed economies, like Singapore and Hong Kong, as well as rapidly growing emerging markets, including China, India, Taiwan, South Korea, and ASEAN nations.
Emerging Global Asian Equity Funds are investment vehicles that pool capital from multiple investors to purchase shares in companies across Asia. These funds provide diversified exposure to Asia’s dynamic economies through professionally managed active portfolios aimed at outperforming, or by passively tracking regional indices such as the MSCI AC Asia Index with its exposure to 1,191 Asian stocks.
Australian investors are increasingly turning to Asian Equity Funds to tap into the region’s dynamic economic growth prospects, expanding middle class, and innovation-led industries. With Asia now accounting for a significant and rising share of global GDP, these funds are exposed to powerful structural growth drivers. The IMF expects emerging Asian economic growth to be 5% in 2025, significantly outpacing global growth of 3%. Diversification benefits are also a key attraction as Asian equities often move independently from Western markets.
Before we dive in, here’s a brief definition of some key terms Emerging Global Asian Equity Fund investors need to understand:
Emerging Global Asian Equity Funds cater to various strategies, with Australian providers including Antipodes, Allard, and GlobalX offering diverse options.
There are five main types of Emerging Global Asian Equity Funds worthy of investor’s consideration:
Traditional Asian Managed Funds can be accessed through direct applications with their fund managers, and often require a minimum investment (e.g. $10,000 - $25,000).
The professional managers of these funds select stocks with the objective of outperforming their benchmarks. They aim to leverage extensive on-ground research capabilities to identify outperforming stocks. Many fund managers possess a large network of research professionals based throughout Asia to identify local trends and opportunities.
For example, Traditional Asian Managed Funds like Allard Investment Fund aim to deliver strong long-term returns through a concentrated portfolio of 25-30 Chinese, Indian, and Indonesian stocks. This fund has delivered a 7.7% p.a. return since its inception, and charges a management fee of 1.25% p.a.
In contrast to the active approach of managed funds, ETFs aim to passively replicate the performance of a benchmark like MSCI AC Asia Index.
ETFs offer the diversification of a managed fund with the trading flexibility of a share on the ASX, and they generally charge lower fees than managed funds.
In the words of Covenant Wealth,
‘ETFs offer the advantage of more flexibility. You can buy and sell shares throughout the day at market prices which can be valuable if you want to react promptly to market changes. ETFs also generally (but not always) charge lower fees which, over the long run, can result in the potential for higher returns for your portfolio.’
Passive ETFs, which track broad indices, are the most common type of ETF.
Examples include the Vanguard FTSE Asia ex Japan Shares Index ETF (VAE) with management fees of 0.40% p.a., and the more focused BetaShares Asia Technology Tigers ETF (ASIA), which targets the 50 largest tech companies in Asia (ex-Japan) with management fees of 0.67% p.a.
Active ETFs, in contrast, feature professional management aimed at outperforming but are less common in the Australian market.
Unhedged Funds like Global X India Nifty 50 ETF provide full exposure to currency movements, which can add to gains if the AUD weakens but detract from them if it strengthens.
Currency-Hedged funds use financial instruments to minimise the impact of AUD exchange rate fluctuations on investment returns, providing a return profile closer to the underlying assets' local performance.
Regional/Country Funds focus on specific areas like ASEAN, Greater China, or India. For example, Global X India Nifty 50 ETF invests in the fifty largest companies in India.
Sector/Thematic Funds target specific trends, such as technology innovation (e.g. Betashares Asia Technology Tigers ETF), financial services, or consumer discretionary sectors.
Feature | Exchange-Traded Funds (ETFs) | Traditional Managed Funds |
Trading | Traded on the ASX like shares with real-time pricing. | Priced once daily after market close. Applications are made via the fund manager. |
Fees | Generally lower. Passive ETF fees generally range between ~0.4% and 0.7% p.a. | Generally higher. Active fund fees typically range between ~1.00% and 1.50% p.a. |
Transparency | High. Portfolio holdings are disclosed regularly (often daily). | Lower. Holdings are typically disclosed quarterly. |
Accessibility | High. Minimum investment is the price of one unit (often <$100). | Lower. Minimum investments often start from $10,000+. |
The decision between ETFs and managed funds is summarised by Covenant Wealth:
'Ultimately, the choice between ETFs and managed funds hinges on your financial goals, risk tolerance, and investment preferences.’
Asian Equity Funds provide direct exposure to some of the world’s fastest-growing and most populous economies. They also offer diversification benefits away from the more mature markets of Australia, the US, and Europe. The Asian region’s diverse mix of economies, ranging from developed hubs to dynamic emerging nations, provides multiple, and often uncorrelated, drivers of growth.
As Bill Maldonado, Chief Investment Officer at Eastspring Investments, explains:
‘Asia offers deep and well-developed markets as well as less mature markets, each presenting its own set of unique opportunities’.
For example, the Indian economy is benefitting from multiple structural drivers. Huzaifa Husain, Head of Indian Equities at PineBridge Investments, provides context:
‘India remains one of the fastest-growing countries, led by advancements in digitalisation, rising consumption potential, and energy transition initiatives.’
Technology and innovation is a major theme for Asian companies. Asia is a global leader in innovation across semiconductors, e-commerce, fintech, and AI.
Asian Managed Funds and ETFs provide investors with access to the region’s globally significant companies at the forefront of digital transformation such as Taiwan Semiconductor, Tencent Holdings, and Samsung Electronics.
Asia benefits from powerful long-term economic drivers, including a rapidly expanding middle class, increasing urbanisation, and rising consumption. Countries like India have strong structural growth prospects, while regional economies such as Malaysia and Indonesia offer attractive dividend yields for income-seeking investors.
According to Elizabeth Soon, CFA, Head of Asia ex-Japan Equities at PineBridge Investments:
‘Asia continues to offer compelling opportunities for equity investors, benefiting from a range of opportunity sets across the region.’
Asian equity valuations are attractive versus developed markets.
According to Mike Shiao, Chief Investment Officer, Asia ex. Japan, Invesco:
‘Valuations across Asia equities remain compelling. Compared to developed markets, Asia trades at a meaningful discount, both on a relative basis and against its own historical averages. This valuation gap, combined with strong liquidity, especially in a weaker US dollar environment, offers an attractive entry point for long-term investors.’
Source: Invesco
While offering high growth potential, Asian Equity Funds also involve significant risks including:
💡A Common Mistake to Avoid: Some investors assume all Asian markets carry the same risk profile. In reality, developed markets like Singapore and Hong Kong have a lower risk profile than emerging markets like Vietnam or Indonesia.
💡Pro Tip: Consider currency hedging based on your AUD outlook. In particular, if you expect AUD to strengthen, investing in currency hedged funds may preserve more of your underlying investment gains.
Investing in Asian Equity Funds is generally best suited for individuals with a long-term investment horizon (5-7+ years) who can withstand periods of market volatility.
These funds are ideal for investors seeking:
Understanding tax is crucial for maximising investors’ net returns in Asian Equity Funds.
Here are a few important tax considerations:
💡Tax Trap: Failing to claim the Foreign Income Tax Offset (FITO) on your Asian Equity Fund income can result in double taxation.
💡Record-Keeping Tip: Maintain detailed records of all transactions, distributions, and currency conversions as the ATO requires comprehensive documentation for foreign investment claims.
‘One of the most effective ways of investing in Asian equities is to disregard the benchmark. The Asian equity opportunity set is large enough and diverse enough for investors to be extremely selective.’
Once you’re ready to compare and select Asian Equity Funds, it’s time to take action.
Use this checklist to apply the knowledge from this guide and make an informed choice on investing in Asian funds and ETFs…
Emerging Global Asian Equity Funds offer a compelling pathway to participate in the world’s main economic growth engine while diversifying your portfolio beyond developed markets. With investment structures ranging from low-cost index ETFs to specialist active funds, there’s a suitable option for most investors.
The potential for superior long-term returns is driven by Asia’s powerful demographics, as well as its technological and economic tailwinds. However, this potential comes with higher risks, including currency volatility and political uncertainty.
A successful investment in Asian Managed Funds and ETFs depends on aligning your fund choice with a long-term timeframe, a suitable risk tolerance, and clear diversification goals. By using a disciplined approach to fund selection and portfolio management, Asian Equity Funds can form a powerful return driver within a well-rounded global investment strategy.
Emerging Asian Equity Funds focus specifically on markets across Asia including both developed (Singapore, Hong Kong) and emerging economies (China, India, ASEAN), whereas Global Small-Cap funds target smaller companies worldwide as defined by market capitalisation.
According to CPD: Comparing the role of Emerging Market equities with World Small Cap equities, both asset classes can be volatile, but ‘emerging market equities have a much higher risk profile than global small caps,’ and EM equities can ‘diversify global allocations’ due to their lower correlation with developed markets. Global Small-Cap funds, in contrast, ‘typically amplify DM equity returns,’ and their risk profile is ‘highly differentiated’.
Key benefits of investing in Asian Equity Funds include:
Asian Equity Fund performance drivers include strong domestic demand growth, rising consumer sentiment, economic policy cycles (especially in China), intra-regional trade flows, and technology sector leadership.
According to Asia Capital Markets Report 2025: ‘Asia is the leading region in the establishment of public equity markets for growth companies,’ but challenges such as ‘regulatory hurdles and high entry costs continue to restrict smaller companies’ access to financing.’
When evaluating Asian Equity Fund and ETF transparency and fees, it’s important to investigate:
Once you’ve decided to invest in Asian Equity Funds or ETFs, here are the six steps to follow with the help of InvestmentMarkets:
💡Final Tip: Check out the Asian funds and ETFs available on InvestmentMarkets now.
