The Betashares Asia Technology Tigers ETF (ASX: ASIA) is steady at $11.19 per unit on Friday.
This exchange-traded fund (ETF) gives investors exposure to the 50 largest technology and online retail companies in the Asian region, excluding Japan.
The ETF aims to capture the growth trajectory of companies that are leading Asia's digital and technological transformation.
It is invested in various industry segments including semiconductors, interactive media, technology hardware, and IT consulting services.
Betashares said:
Due to its younger, tech-savvy population, Asia is surpassing the West in terms of technological adoption and the sector is anticipated to remain a growth sector.
Betashares says ASIA is attractive for investors seeking geographic and sector diversification beyond the US and the Magnificent Seven.
The geographic allocation is appealing with 44.4% of the ETF invested in China, 27.6% in Taiwan, 15.8% in South Korea, 7.1% in India, and 4.9% in Singapore.
The ASIA ETF seeks to mirror the performance of the Solactive Asia Ex-Japan Technology and Internet Tigers Index before fees.
The top five holdings in the ASIA ETF are Alibaba Group Holding Ltd at 11%, Tencent Holdings Ltd at 11%, Taiwan Semiconductor Manufacturing Co Ltd at 8.9%, Samsung Electronics Co Ltd at 8.7%, and Xiaomi Corp at 7.3%.
The ASX ETF pays distributions, or dividends, twice per year.
The management fee is 0.57% per annum plus additional expenses of about 0.1% per annum.
So, what if you invested $10,000 in the ASIA ETF a year ago? Was it a good decision?
Let's find out.
Say you invested $10,000 in ASIA ETF a year ago…
On 6 June last year, the ASIA ETF closed at $8.92 apiece.
If you had put $10,000 into ASIA then, it would have bought you 1,121 units (for $9,999.32).
There's been a capital gain of $2.27 per unit since then.
That has delivered you an annual capital growth of $2,544.67.
Therefore, your portfolio is now worth $12,543.99.
The ASIA ETF also pays dividends (called 'distributions' with ETFs).
ASIA has paid two distributions since 6 June 2024.
The ASIA ETF paid investors 2.9858 cents per unit on 16 July last year. The ETF then paid 5.994 cents per unit on 17 January.
Altogether, that adds up to 8.9798 cents per unit.
So, you've received $100.66 in annual income from your 1,121 ASIA ETF units.
Your total annual returns…
Your capital gain of $2,544.67 plus $100.66 in dividends gives you a total dollar return of $2,645.33 over the past 12 months.
As stated earlier, you spent $9,999.32 buying your 1,121 units on 6 June last year.
This means you have received a total annual return, in percentage terms, of 26.45%.
