If you have a longer-term investment horizon, and am keen to get some stock exposure in a diversified and cost-efficient way, one popular strategy is to consider the iShares Core MSCI World UCITs ETF (ticker: IWDA LN) and iShares Core MSCI EM IMI UCITs ETF (ticker EIMI LN). The former offers exposure to approximately 1,600 developed market stocks, while the latter provides exposure to approximately 2,600 emerging market stocks.
Separately, China stocks are still relatively underrepresented by global stock indices (i.e. China and South Korea stocks comprise about 36% and 14% of the earlier mentioned EIMI ETF, but China’s GDP is close to 8x that of South Korea). If you wish to increase the allocation to China stocks to correct for this underrepresentation, iShares Core MSCI China ETF (ticker 2801 HK) is worth considering as it provides exposure to China companies across both onshore and offshore stock exchanges.
For Fixed Income, the areas that I consider relatively more attractive for the moment would be China Sovereign Bonds, as well as Asian Corporate High Yield. For Singapore investors, the former may be easily accessed via the ICBC CSOP FTSE Chinese Government Bond Index ETF listed on SGX, while the latter is better done through a unit trust.
I had previously published an article on my thoughts on China Govt Bonds but please also do your own due diligence if you intend to invest!
https://theinvestquest.com/chinese-govt-bond-in...
If you have a longer-term investment horizon, and am keen to get some stock exposure in a diversified and cost-efficient way, one popular strategy is to consider the iShares Core MSCI World UCITs ETF (ticker: IWDA LN) and iShares Core MSCI EM IMI UCITs ETF (ticker EIMI LN). The former offers exposure to approximately 1,600 developed market stocks, while the latter provides exposure to approximately 2,600 emerging market stocks.
Separately, China stocks are still relatively underrepresented by global stock indices (i.e. China and South Korea stocks comprise about 36% and 14% of the earlier mentioned EIMI ETF, but China’s GDP is close to 8x that of South Korea). If you wish to increase the allocation to China stocks to correct for this underrepresentation, iShares Core MSCI China ETF (ticker 2801 HK) is worth considering as it provides exposure to China companies across both onshore and offshore stock exchanges.
For Fixed Income, the areas that I consider relatively more attractive for the moment would be China Sovereign Bonds, as well as Asian Corporate High Yield. For Singapore investors, the former may be easily accessed via the ICBC CSOP FTSE Chinese Government Bond Index ETF listed on SGX, while the latter is better done through a unit trust.
I had previously published an article on my thoughts on China Govt Bonds but please also do your own due diligence if you intend to invest!
https://theinvestquest.com/chinese-govt-bond-in...