Global X FTSE Southeast Asia ETF (ASEA)

Overview

The Global X FTSE Southeast Asia ETF (ASEA) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the FTSE/ASEAN 40 Index. The fund invests in companies located in Southeast Asian countries, focusing on large- and mid-capitalization companies.

Reputation and Reliability

Global X is a well-established ETF provider known for its thematic and international ETFs.

Management Expertise

Global X has a dedicated team of portfolio managers with experience in managing international equity ETFs.

Goal

To provide investment results that correspond to the price and yield performance of the FTSE/ASEAN 40 Index.

Investment Approach and Strategy

Strategy: Tracks the FTSE/ASEAN 40 Index, which represents the performance of the 40 largest and most liquid companies in Southeast Asia.

Composition Primarily invests in stocks of companies domiciled in Southeast Asian countries like Singapore, Malaysia, Thailand, and Indonesia.

Market Share: Difficult to pinpoint an exact market share as ASEA is relatively unique; it's a narrower market of ASEAN-focused ETFs.

Total Net Assets (AUM): 28080000

Key Competitors

• EIDO

Competitive Landscape

The competitive landscape is dominated by larger, more diversified emerging market ETFs. ASEA's focus provides targeted exposure, but it faces competition from broader regional ETFs. ASEA benefits from its specific regional focus. ASEA is small AUM is a disadvantage compared to larger competitors.

Historical Performance: Historical performance varies depending on the period; review recent data for accuracy.

Benchmark Comparison: ASEA's performance should be compared to the FTSE/ASEAN 40 Index to assess tracking effectiveness.

Expense Ratio: 0.5

Average Trading Volume

Average trading volume for ASEA is relatively low, which could impact execution costs for larger trades.

Bid-Ask Spread

The bid-ask spread can be wider due to lower trading volume, increasing the cost of buying and selling.

Market Environment Factors

Economic growth in Southeast Asia, commodity prices, and political stability all impact ASEA's performance.

Growth Trajectory

Growth depends on the overall economic health of the ASEAN region and investor appetite for emerging markets.

Competitive Edge

ASEA provides targeted exposure to the dynamic Southeast Asian economies. Its focus on the FTSE/ASEAN 40 Index offers a specific investment lens, differentiating it from broader emerging market ETFs. The ETF benefits investors seeking concentrated exposure, but its narrow focus increases risk. Despite targeted exposure, AUM is small, which impacts economies of scale.

Volatility

ASEA may exhibit higher volatility than developed market ETFs due to the emerging market nature of its holdings.

Market Risk

ASEA is exposed to political, economic, and currency risks specific to Southeast Asian countries.

Ideal Investor Profile

Investors seeking targeted exposure to Southeast Asian economies and diversification within their emerging market portfolio.

Market Risk

Suitable for long-term investors with a higher risk tolerance seeking exposure to emerging markets.

The Global X FTSE Southeast Asia ETF (ASEA) offers targeted exposure to the ASEAN region, tracking the FTSE/ASEAN 40 Index. Its focused strategy appeals to investors seeking diversification in emerging markets, but it carries specific regional risks. Relatively low AUM and trading volume are considerations for investors. Performance should be evaluated against its benchmark. Its focused nature offers an advantage for investors seeking regional exposure but with associated risks.

Data Sources:

• Global X ETFs website
• FTSE Russell
• ETF.com

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Consult with a qualified financial advisor before making any investment decisions. Market share data are estimates.