Hello All,I thought I should throw this one out there as I have not been able to find a good discussion on this topic that is comparing investing in **Emerging Markets** and **Asia ex Japan**.
A few points to note based on my understanding:
- Both these markets provide adequate exposure to China.
- Asia ex Japan in provides exposure to South Korea which is often missing in Emerging Markets since it is not really 'emerging'. South Korea to me shows a lot of promise.
- Whilst Emerging Markets are prone to substantial risk as has been the case this year so far, Asia ex Japan is risky since it is confined to a specific geographic area.
- Emerging Markets will evolve over time as countries transition to become 'developed economies' whilst the same is not true for Asia ex Japan countries.
For reference, if we compare VAE (Vanguard Asia ex Japan ETF) and VGE (Vanguard Emerging Markets ETF), they seem to be highly correlated! There isn't as much data available since these ETFs were launched not too long ago, so hard to pick a winner here.
What are your thoughts guys? Which one would be the better bet long-term (over a 20-30 year window)? Is there any merit in having exposure to both these markets? I would love to have a discussion going on this and gather people's thoughts.
Submitted July 24, 2018 at 07:07AM by vg1302 https://ift.tt/2JP3NeD
