AAXJ VS FAX: A Comprehensive Comparison of ETFs
4 min read
By Ron Koren, ETF Insider

AAXJ VS FAX: A Comprehensive Comparison of ETFs

Exchange-Traded Funds (ETFs) have transformed the investment landscape, providing investors with diverse exposure to a wide range of sectors and asset classes. In this article, we will conduct an in-depth comparison between two prominent ETFs: AAXJ (iShares MSCI All Country Asia ex Japan ETF) and FAX (Aberdeen Asia-Pacific Income Fund). We will analyze various elements, including ETF tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking methods, and exposure.

AAXJ VS FAX: Overview

AAXJ and FAX are distinct ETFs that cater to different investment strategies within the Asian market. While AAXJ provides exposure to equities from the entire Asia ex Japan region, FAX focuses on income generation from fixed-income securities across the Asia-Pacific region. These varying objectives result in diverse risk and return profiles, which we will delve into further.

AAXJ VS FAX: Sectors and Top Holdings

The AAXJ ETF encompasses a broad spectrum of sectors, including technology, finance, and consumer goods. Its top holdings include prominent Asian companies such as Tencent Holdings, Alibaba Group, and Samsung Electronics. In contrast, FAX predominantly invests in fixed-income securities issued by governments and corporations in the Asia-Pacific region. Understanding the sectors and top holdings aids investors in selecting the ETF that aligns with their investment preferences and risk appetite.

AAXJ overlap AAXJ VS FAX: A Comprehensive Comparison of ETFsAAXJ overlap AAXJ VS FAX: A Comprehensive Comparison of ETFs

AAXJ VS FAX: Capitalization and Strategy

AAXJ boasts a substantial asset under management (AUM), highlighting its popularity among investors seeking exposure to the Asia ex Japan equity market. On the other hand, FAX employs a strategy focused on generating income through investments in bonds and other fixed-income instruments. The difference in capitalization and strategy between these two ETFs translates into varying potential returns and associated risks, demanding careful consideration from investors.

AAXJ VS FAX: Tracking Methods and Exposure

AAXJ tracks the performance of the MSCI All Country Asia ex Japan Index, aiming to mirror the returns of companies across multiple sectors in the Asia ex Japan region. In contrast, FAX seeks to provide investors with income from Asian fixed-income securities, primarily through investing in bonds. Understanding the distinct tracking methods and exposure strategies of these ETFs empowers investors to make informed decisions based on their investment goals and risk tolerance.

Conclusion

AAXJ and FAX offer unique investment opportunities, each tailored to specific market segments within the Asian region. For those seeking deeper insights into holdings, correlations, overlaps, and other relevant information, ETF Insider serves as an invaluable tool. With its user-friendly app, ETF Insider offers comprehensive details about these ETFs and various other financial instruments.

Disclaimer: This article does not provide any investment advisory services.

Sources:

iShares. "iShares MSCI All Country Asia ex Japan ETF." URL: https://www.ishares.com/us/products/239674/ishares-msci-all-country-asia-ex-japan-etf
Aberdeen Standard Investments. "Aberdeen Asia-Pacific Income Fund." URL: https://www.aberdeenstandard.com/en-us/us/institutional/funds/3284/aberdeen-asia-pacific-income-fund

AAXJ ETF issuer
AAXJ ETF official page

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