Add Asia To Your Portfolio With This ETF (PAF)

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July 1, 2009 1:26pm ETF BASIC NEWS NYSE:PAF

asiaAs the world is dealing with financial armageddon, recently The World Bank revised it’s outlook on the world stating it expects the global economy to contract by 2.9 percent.  Some economies will suffer more than others though.


Tony Sagami from HoweStreet reports “As always, it pays to read the fine print. While the World Bank is worried about the developed parts of the globe, it has an extremely optimistic outlook for China. While it was chopping its 2009 forecast for Japan, Europe, and the United States, the World Bank sharply raised its economic growth forecast for China from 6.5 percent to 7.2 percent.”

“The rest of China’s neighbors (and trading partners) are enjoying the same type of robust growth. Southeast Asia and the Pacific regions are expected to grow by 4.6 percent and 5 percent, according to the World Bank. Think about those numbers. If you’re an investor — and I know you are — do you want to bet your life savings on deteriorating economies, or do you think it makes sense to include a heavy dose of Asian spice in your portfolio?” Sagami reports.

“The answer is crystal clear to me: You should use rallies in the U.S. stock market to lighten up on U.S. stocks and move those stocks into fast-growing Asian companies. You could add an ETF like the PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio (PAF), which tracks the performance of the largest companies in the Asia-Pacific region, excluding Japan,” Sagami reports.

PowerShares FTSE RAFI Asia Pacific ex-Jp (PAF) seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of the equity index called the FTSE RAFI Developed Asia Pacific ex Japan index. The fund normally invests at least 90% of assets in stocks that comprise the FTSE RAFI Asia Pacific ex Japan index and ADRs based on the stocks in the FTSE RAFI Asia Pacific ex Japan index. It normally invests at least 80% of total assets in securities of companies that are classified as Asia Pacific within FTSE’s country classification definition, excluding Japanese companies.

We have included a list of the top companies within this ETF below:

TOP 10 HOLDINGS ( 37.07% OF TOTAL ASSETS)  
 
Company Symbol % Assets
ANZ BANK FPO ANZ.AX 3.35
Babcock & Brown Infrastructure Group N/A 2.81
BHP Billiton Limited N/A 6.2
Commonwealth Bank of Australia N/A 3.92
FKP Property Group N/A 3.57
Macquarie Communications Infrastructure Group N/A 3.83
National Australia Bank Limited N/A 4.22
RIO TINTO FPO RIO.AX 2.76
TRANSURBAN STAPLED TCL.AX 3.47
WESTPAC FPO WBC.AX 2.94

 Full Story: Here

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