AXJ GLOBAL NEWS NETWORK

AXJ is your trusted financial advisor when it comes to recommending good solid and secure investments for the future.

AXJ (or AxJ) also refers to “Asia ex-Japan” in investments — a common category for equity exposure to Asian markets excluding Japan. Japan is typically separated because it is a mature developed economy, while the rest of Asia includes a mix of developed (e.g., South Korea, Taiwan, Singapore) and emerging markets (e.g., China, India) with higher growth potential.

www-investopedia-com.translate.googWhy Invest in AXJ / Asia ex-Japan?

• Growth drivers: Rapid economic expansion, rising middle class, tech/AI leadership (semiconductors, electronics), and structural shifts in supply chains.
• Diversification: Reduces reliance on US or global developed markets; offers exposure to dynamic regions.
• Valuations and earnings: Often seen as attractive relative to developed markets, with strong tech and AI tailwinds in recent years. dbs.com.hk
• Risks: Geopolitical tensions (e.g., US-China), currency volatility, regulatory changes in China, and higher volatility than developed markets.

Popular AXJ Investment Vehicle: iShares MSCI All Country Asia ex Japan ETF (AAXJ)This is one of the most liquid and widely used ETFs tracking the region (launched 2008, managed by BlackRock/iShares).

Blackrock.com

• Objective: Tracks the MSCI AC Asia ex Japan Index (free float-adjusted, market-cap weighted). Covers ~10 countries: China, Hong Kong, India, Indonesia, Malaysia, Philippines, Singapore, South Korea, Taiwan, Thailand. Holds hundreds of large- and mid-cap stocks (typically 900+ holdings). schwab.wallst.com
• Key stats (as of mid-June 2026, approximate/recent figures):
  • Net assets: ~$4 billion.
  • Expense ratio: 0.72%.
  • Yield (trailing/SEC): ~1.4%.
  • Top countries (approximate): Taiwan (~22-25%), China (~25-30%), India (~15-16%), South Korea (~12%), others.
  • Top sectors: Technology heavy (~47-49%, driven by semiconductors), Financials (~16%), Consumer Discretionary, Industrials. money.usnews.com
  • Top holdings (examples, weights vary; recent): Taiwan Semiconductor (TSMC, often 12-16%), Samsung, SK Hynix, Tencent, Alibaba, MediaTek. morningstar.com

Recent performance (strong in 2025-2026, driven by tech/AI; check latest for real-time):

• YTD: ~26-33% (outpacing broader categories in many reports).
• 1-year: ~45-56%.
• Longer-term: Volatile but with solid growth potential; 3-year annualized ~14-24% in total return periods. money.usnews.com

Other AXJ options:

• Hong Kong-listed iShares Core MSCI Asia ex Japan ETF (03010 / ISHARES AXJ): Physical replication, popular in Asia for HKD/USD/RMB trading. blackrock.com
• Active funds (e.g., AllianceBernstein or others targeting undervalued AXJ stocks).
• Related ETFs: Country-specific (e.g., EWT for Taiwan, EWY for Korea) or broader EM ex-China.

Considerations for Investing

• Bull case: Tech/semiconductor dominance, India/China recovery, AI capex.
• Bear case: Trade tensions, slowing China growth, currency/EM risks.
• How to access: Trade AAXJ on NASDAQ like a stock (via brokerage). Suitable for long-term diversified portfolios (e.g., 5-15% allocation depending on risk tolerance).
• Always review prospectus, consider costs/taxes, and diversify. Past performance (e.g., strong recent tech-driven returns) is not indicative of future results.