Would InvestEngine consider including some ex-China ETF, e.g. EMXC.
Most of the Emerging Market ETF have a very heavy percentage of ratio invested in China. That does not really help diversification. In view of the geopolitical risk with China increasing everyday, I really would like to lower exposure to the China market, without lowering my exposure to other emerging markets. Ex-China fund is what I am looking at. Thanks.
I actually made this account today to request exactly this!
Not being able to easily get semi-diversified EM exposure is a big gap on InvestEngine at the moment. Especially if you’re like me and invest 40% in EM.
All the EM ETFs are almost 50% China+Taiwan, which is a geopolitical risk some would consider akin to Russia+Ukraine prior to 2022.
EMXC is a US domiciled ETF, the UCITS version is EXCS.
My wishlist:
I believe this voting link still works, if people are keen on these two please vote for them here. The iShares EFT won’t show unless you type EXCS.
No time like the present to revive this, with suggestions that China may be about to provide lethal aid to Russia.
China may be on brink of supplying arms to Russia, says Blinken | Ukraine | The Guardian
An option sorely missing on IE.
It would be great to get EMXG on ASAP! (I’ve since learned that sadly EXCS is not available in GBP).
I start to wonder if Chinese fund is behind this InvestEngine platform so there is still no ex-China funds for subscription. You easily find ex-UK and ex-Japan funds to choose from here. However, even as ex-China fund is already popular as a sensible investment choice - for proper diversification to exclude economies which are too big in certain category, e.g. UK and Japan, and for lowering exposure to clear escalation of geopolitical risk, there is still no ex-China to choose from.
I think the explanation is rather more innocent. I’m pretty certain China has made up the majority of EM returns over the past few decades, even relative to its size. Hence the demand for ex-China funds has been low. I think most of them are relatively new. EMXG has <GBP200m in funds.
Ex-Japan for example is very popular because the economy is a large proportion of Developed Asia/Oceania but has been stagnant for decades.
Ex-UK has gained in popularity since Brexit, but I think has been popular for longer, perhaps because the LSE is full of multinationals and the different currency.
We just need more IE users to vote for the ex-China ETF - EMXG 