100k to invest in growth Asian stocks

Hi guys, I want to get some ideas in how I can best use a 100k in growth stocks. I heard a lot of good things about ETF and LIC. I have some experience in the share market as I have holdings in some of the blue-chip companies in the ASX and US tech companies. I want to expose to technology companies in China and other emerging markets as I felt there's still a lot of room for growth in the next 10 -20 years, like it or not and politics aside, China will remain the world engine for growth in the foreseeable future. I'm not risk adverse, but at the sametime I don't want to be rackless with my money either, it would great if someone can give some ideas how it can be done and what pit falls that I should be aware off either regarding to the method or the asset type in general. I have the option to invest in my SMSF or outside.

 

You may want to consider this ETF if you want to invest in Asia technology companies:
ASX ASIA | Asia Technology Tigers ETF | BetaShares

Personally I think the biggest risk at the moment is the U.S. sanctions on China’s technology companies.
Alibaba and Tencent shares drop on US investor blacklist report

 

It is simple, ASIA would be the one stop shop, and/ or NDQ, NDQ will give alot of Asian and Global Exposure and perhaps some of that. Perhaps build some positions in JD.Com and BilliBilli Take positions in ASIA's top holdings. What I have learned is that winners keep winning. and people buy loser's because they think they are cheap.

 

Here are the ticker codes and brief descriptions of four ETFs that'd work for you. There's some overlap so no need invest in all four - pick one or two you like.

ASIA - ASX ASIA | Asia Technology Tigers ETF | BetaShares
ASIA aims to track the performance of an index (before fees and expenses) comprising the 50 largest technology and online retail stocks in Asia (ex-Japan), including technology giants such as Alibaba, Tencent, Baidu and JD.com.

IAA - iShares Asia 50 ETF | IAA | -
The fund aims to provide investors with the performance of the S&P Asia 50TM Index, before fees and expenses. The index is designed to measure the performance of the 50 leading companies listed in China, Hong Kong, Macau, Singapore, South Korea and Taiwan.

IZZ - iShares China Large-Cap ETF | IZZ | -
The fund aims to provide investors with the performance of the FTSE China 50 Index, before fees and expenses. The index is designed to measure the performance of 50 of the largest and most liquid Chinese companies which trade on the Hong Kong Stock Exchange.

IEM - iShares MSCI Emerging Markets ETF | IEM | -
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.

 

Thanks for tips all, do you guys invest in ASIA also? I think the longer term potential might be better than say amazon or Apple as they are already so highly valuated and more saturated. I am betting on that if China becomes the biggest economy within the decade, eventually there will be companies that will match and exceeding the likes of Apple and Amazon in terms of market cap.

 

I doubt it only got to look at what Chinese regulators are doing to Alibaba, but if that is what you think you should buy Alibaba, as I suggested JD,com may have more upside and also Pinduoduo . I have Invested/parked money in ASIA before put pulled it out, but am considering putting some back in the next 6 months perhaps starting soon.

 

yeah, I think there short to medium term risks both internally and externally driven factors. but I do think it would be matter of when and not if. I am going to do it from my super, should it would be a long term set and forget play. JD seem to be a recommended stocks by a few reputable sources, the seem to be more allied to the amazon retail model.

 

Apple released it's quarterly report last week, making a killing in China with 21.3b in sales up from 13B same Q last year, will soom be bigger market than Europe. The Chinese are show offs and dont want local crap, bad for image. Also dont think China is advanced with the development of quantum computing qbits may disrupt everything in years to come including cybersecurity. Will be able to compute in seconds what takes thousands of years now.

 

I wish I could laugh react to this.

 

On the Vanguard side there is also
Vanguard FTSE Asia ex Japan Shares Index ETF (VAE)

 

What's the difference between Betashares and. Vanguard reliability, service and performance wise. I am completely new to the ETFs. Would be good if some of you can point out the pros and cons of using each. I have my smsf with BT, would both ETF providers be available for investing. Currently my super consist of a Perth property and cash.

 

The ETFs mentioned are all available on the ASX and traded exactly like shares. BetaShares is strictly Australian. Vanguard & BlackRock are the largest fund managers in the world. They're all reliable and well-established.

Vanguard: 8.8 trillion USD AUM
BlackRock: 8.676 trillion USD AUM
BetaShares: 14.7 billion AUD AUM

Vanguard is generally "cheaper" as they have a lower MER fee. I'm happy to pay slightly higher MER if the fund generally outperforms though. They're all cheaper than traditional fund managers anyway.

Investing in ETFs | BT

 

Apple is still popular there, but nowhere near as popular as it use to be, they have been hanging around the single digit % and have been loosing market shares prior to iPhone 12 release. That's going to the the long term trend. Huawei was already dominate Chinese Market and well on its track in become the no 1 mobile company..... Then the tech cold War happened.
My wife has Xiaomi mi 10 Pro and its cameras kills my Samsung note 20 ultra's. I think the fundamentals of Chinese tech industry is quite strong and will only get stronger. I think the only major risk is a major political fallout and entering coldwar 2.0. That's more unlikely now that Biden is in charge.

 

Maybe it will, maybe it won't. But economic growth =/= shareholder return. Have a look here:

Total bull crap.

 

Sure, nothing is set in stone. But as investors, we need to take position and calculated risks. US tech and Chinese tech companies might not be equal right now, but I am optimistic about the entrepreneur spirit and increasing sophistication of Chinese tech sector that growth will continue. Lots people still holds a rather outdated view of Chinese companies. It actual fact, a lot of recent technology trends are set in China and copied by counterparts in the west. I think the main worries are political headwinds facing those companies as we have seen recently, but on ability and sophistication alone, I think Chinese tech companies can stand tall.

 

I am also interested in renewable/green tech as we now have overwhelming support for climate action across the globe. Any recommendation on good ETF for sectors such as those?

 

Are you interested because you want to invest in "green" companies, or because you think they will provide better returns?

 

Both ! Would be a bonus if my quest for wealth also helps the environment.

 

If you have to choose. Which do you choose?

Tell us what you really think

 

1) I don't think investing in a green company helps the environment in any way. When you buy shares your money does not go to the company to be used for "good" - it goes to the seller. You're just exchanging ownership of two assets. I guess if the company wants to raise money and the share price is high, that can be one benefit. Or if you participate in the initial offering.

2) ESG companies typically yield lower average returns, most likely because investors over pay for the asset. Doesn't say anything about returns going forward but good to keep in mind.

With investing, it's often the opposite of what seems obvious at first.