Nowadays everyone wants to invest their money in some of the other forms. Depending on your needs, you can invest in stocks, government bonds, debentures, recurring deposits, mutual funds, etc. if you are someone who wants steady returns, you might want to invest in bonds or fixed deposits. If you are someone who wants to grow their money irrespective of the returns, stocks are a great investment. Mutual funds are also a great option for people who want some stability along with growth. Another great investment route is an equity traded fund (ETF).
An exchange-traded fund is similar to mutual funds. They are operated in the same way, just that ETFs are traded on the stock exchange, unlike mutual funds. An ETF is a type of security that tracks an underlying index, although the fund can be invested in any number of industries. ETFs can be easily bought and sold, making it marketable security. There are many types of ETFs, index funds being one of them. An index fund owns the same stocks that are included in stock indexes, such as the S&P 500.
iShares MSCI All Country Asia Ex Japan ETF (NASDAQ: AAXJ at https://www.webull.com/quote/nasdaq-aaxj) is an index fund that is designed to measure the equity market performance in 12 countries: Australia, China, Hong Kong, Japan, India, Indonesia, Malaysia, New Zealand, the Philippines, Singapore, Taiwan, South Korea, and Thailand. The advisor and distributor of this fund are BlackRock Fund Advisors (BFA) and BlackRock Investments LLC respectively. The administrator, custodian, and transfer agent of this fund are State Street Bank and Trust Company. This fund corresponds to the price and yield performance of the MSCI All Country Asia Ex-Japan Index. This fund is traded under the ticker ‘AAXJ’ on Nasdaq. This fund invests nearly 90% of its assets in securities of the underlying index.
The Nasdaq AAXJ fund is geographically exposed to China and Taiwan. In terms of currency exposure, the fund is mainly exposed to Hong Kong Dollars. Its sector exposure is major to Financials and industry exposure to Banks. Total assets under management (AUM) in this fund are worth $3.94 billion. Before the pandemic hit, the fund was traded for $64.62. Since then, the ETF has traded for $75.39 on the stock market. This fund has a market cap of $4.06 billion and has a dividend yield of 1.6%
ETFs are an ideal investment vehicle for young investors with a medium to small amounts to invest. ETFs help in building a diversified portfolio with low investment amounts. As ETFs are traded throughout the day like ordinary stocks, they provide liquidity to the investor. You can check stock market quotes before stock trading.