If I am already vested in China markets via ETFs. Would it make sense to look at other ETFs focused on China sectors or should I look to other markets? ?

China is going to make up only 3.3% of the MSCI All-Country World Index, despite the size of its economy being 2nd/3rd place depending on which report or the timing of measurement. The reason is because China equity markets are still not entirely free for investors to transact and there exist many other risks like bankruptcy and corporate governance etc.

Also, putting all your eggs in one basket is risky and irrational. If the U.S.-China trade tensions didn't improve but instead were escalated, can you take the risk of being narrowly focused on China?

Therefore, you may want to rethink and diversify across other regions.

You may check out our blog posts for other investment techniques or concepts worth noting about: https://www.autowealth.sg/blog/

Hi Anon, you still can look into ETFs focused on china sectors -- it's just like you put more money into those particular stocks compared to the (i'm assuming) broad based ETF that already tracks the broad market index, which provides good diversification for your portfolio. If you are quite familiar with that particular sector and see good growth potential I see no reason not to.

Looking at other markets means you will expose yourself to that market's risk, so if you aren't sure or confident about what's going on there I would not put my money there.

However of course, just take note of the possible cost of maintenance of these ETFs-- more narrowly defined ETFs may carry higher cost to track more volatile sectors.