Going Beyond China With ETFs

Lastly, Asian nations are diligently working together to construct an agreement that will free up trade, enabling them to decouple from the United States and Europe. Over time, this will help the region by lowering economic barriers, further enabling nations to develop more efficient economies of scale. Additionally, the agreement could potentially increase the inflow of foreign direct investment, which could further lead to technological advancements and even more economic growth.

Gaining access to these nations is relatively easy through the following ETFs:

iShares MSCI Hong Kong Index(EWH), which has benefited from China's growth and stimulus package and will likely continue to do so. EWH closed at $14.52 on Monday.

iShares MSCI South Korea Index(EWY), which holds companies like Samsung, who are expected to witness a nice uptrend. EWY closed at $43.90 on Monday.

iShares MSCI Singapore Index(EWS), which relies on manufacturing and is expected to see signs of recovery. EWS closed at $10.54 on Monday.

iShares MSCI Taiwan(EWT), which is being bolstered by exports to China, low interest rates and stable consumer prices. EWT closed at $11.45 on Monday.

When investing in these equities, it is important to consider factors that could potentially hinder economic growth and prosperity in these nations, such as economic bubbles in China. A good way to protect against these factors as well as the inherent risks involved with investing in equities, is through the use and implementation of an exit strategy that triggers price points at which an upward trend could potentially be coming to an end.

According to the latest data at www.SmartStops.net, the price points for the aforementioned ETFs are EWH at $14.18; EWY at $43.43; EWS at $10.30; and EWT at $11.32. These price points fluctuate on a daily basis and reflect changes in market conditions. Updated data can be found at www.SmartStops.net.

Written by Kevin Grewal in Laguna Niguel, Calif.

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