IDX VS IDXJ: A Comprehensive Comparison of ETFs
The Indonesian market presents a unique opportunity for investors looking to diversify their portfolios. In this article, we will compare two Indonesian-focused ETFs, IDX (iShares MSCI Indonesia ETF) and IDXJ (Global X MSCI SuperDividend EAFE ETF), across various factors like tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking, and exposure.
IDX > IDXJ: Overview
IDX and IDXJ are both investment vehicles that aim to provide exposure to the Indonesian market. While IDX has a broader focus, targeting a range of sectors in Indonesia, IDXJ narrows its focus primarily on the financial sector. Understanding these differences is crucial for investors looking to gain specific types of exposure to the Indonesian economy.
IDX > IDXJ: Issuers and Investment Philosophy
IDX is managed by BlackRock's iShares, and it aims to track the investment results of the MSCI Indonesia Investable Market Index. On the other hand, IDXJ is managed by Global X ETFs, targeting the performance of the INDXX SuperDividend EAFE Index. Each issuer brings its distinct investment philosophy, making it imperative for investors to understand these aspects.
IDX overlap IDX VS IDXJ: A Comprehensive Comparison of ETFs
IDX > IDXJ: Sectors and Top Holdings
IDX covers a wide array of sectors such as Financials, Consumer Staples, and Telecommunication Services. Its top holdings include Bank Central Asia and Telekomunikasi Indonesia. Conversely, IDXJ has a more concentrated focus, heavily investing in the financial sector with top holdings like Bank Negara Indonesia and Bank Mandiri. Knowing the sectors and top holdings can offer investors insights into the risks and rewards associated with each ETF.
IDX > IDXJ: Capitalization and Asset Under Management
IDX generally commands a higher Asset Under Management (AUM), indicating a higher level of investor confidence and liquidity. IDXJ, although smaller in terms of AUM, offers a more targeted investment in high-dividend-paying companies in Indonesia. These differences in capitalization and AUM can provide valuable insights for potential investors.
IDX > IDXJ: Strategy and Tracking
Both IDX and IDXJ employ passive investment strategies. IDX aims to replicate the performance of the MSCI Indonesia Investable Market Index, whereas IDXJ seeks to mirror the INDXX SuperDividend EAFE Index. Understanding these tracking methods can help investors decide which ETF better aligns with their investment goals.
IDX > IDXJ: Exposure and Risk
IDX offers a more diversified exposure to the Indonesian market, making it suitable for those looking for broader market participation. IDXJ provides more specialized exposure, focusing primarily on the financial sector and high-dividend-paying companies. The risk profiles for these ETFs are accordingly different, and investors must evaluate which fits better with their risk tolerance and investment objectives.
Conclusion
Both IDX and IDXJ offer intriguing options for investors interested in the Indonesian market. However, they come with different scopes, strategies, and risk profiles. For those looking to explore further, the ETF Insider app is a comprehensive tool that provides in-depth information on holdings, correlations, overlaps, and much more, all in a user-friendly interface.
Disclaimer: This article does not provide any investment advisory services.
IDX ETF issuer
IDX ETF official page