Pay attention to a variety of overseas ETFs and stocks not found in domestic ETFs
An ETF is an exchange-traded fund, and as the name suggests, it is listed on the stock exchange. ETFs are classified into “domestic ETFs” formed in Japan based on Japanese laws and “foreign ETFs” formed in foreign countries based on foreign laws and regulations. In this article, we will introduce different types of overseas ETFs.
Overseas ETFs have a large number of stocks and plenty of options
Foreign ETFs are divided into stocks listed on Japanese stock exchanges and stocks listed on overseas stock exchanges. Here, foreign ETFs listed on overseas stock exchanges are called “overseas ETFs.”
Overseas ETFs have a large number of stocks, and there are plenty of options. It is characterized not only by the “index management type” linked to the index, but also by the fact that there are “active management type” ETFs where fund managers select stocks.
Overseas ETFs have a large number of stocks, and there are plenty of options. It is characterized not only by the “index management type” linked to the index, but also by the fact that there are “active management type” ETFs where fund managers select stocks.
At securities companies that handle overseas ETFs, transactions are possible by opening a foreign stock account. Overseas ETF transactions are carried out in foreign currency such as US dollars, but many securities companies have a service called “yen payment,” where ETF trading and exchange transactions are carried out simultaneously. If you use yen currency settlement, you can invest in overseas ETFs without preparing dollars or the like in advance, without preparing dollars or the like in advance.
However, while transactions in yen currency are easy, there are disadvantages, such as costs such as exchange fees, which tend to be higher than foreign currency payments. If costs are important, we recommend “foreign currency payments,” which separate exchange transactions and ETF transactions.
However, while transactions in yen currency are easy, there are disadvantages, such as costs such as exchange fees, which tend to be higher than foreign currency payments. If costs are important, we recommend “foreign currency payments,” which separate exchange transactions and ETF transactions.
Introducing 4 unique overseas ETFs
Among overseas ETFs, there are many different types of stocks that are not found in domestic ETFs. In this article, we will introduce 4 unique stocks from such overseas ETFs.
Ticker symbol: ICLN
Major exchanges: NASDAQ (US)
Target Index: S&P Global Clean Energy Index
Investment Target: Global Equities
Market Price: $18.96 *1
Gain/fall rate over the past year: -24.27% *2
Gain/fall rate over the past 3 years (annual rate): 6.9% *2
Expense rate: 0.40%
Operating company: Blackrock, Inc.
*1 As of November 7, 2022
*2 As of October 31, 2022
Major exchanges: NASDAQ (US)
Target Index: S&P Global Clean Energy Index
Investment Target: Global Equities
Market Price: $18.96 *1
Gain/fall rate over the past year: -24.27% *2
Gain/fall rate over the past 3 years (annual rate): 6.9% *2
Expense rate: 0.40%
Operating company: Blackrock, Inc.
*1 As of November 7, 2022
*2 As of October 31, 2022
The “iShares Global Clean Energy ETF” is an ETF that aims to produce investment results equivalent to an index composed of global stocks in the clean energy sector.
Due to rising global environmental awareness such as decarbonization and the SDGs, attention is being drawn to clean energy. It is an essential field for creating a sustainable society, and it can be said that it is a sector suitable for long-term investment.
This ETF holds stocks related to countries such as China and Denmark, mainly in America, which has cutting-edge clean energy technology. As of 2022/11/4, America had the largest incorporation ratio by country at 39%, followed by China at 13%. Japan remains at around 2%.
Although the price of the “iShares Global Clean Energy ETF” has dropped drastically recently, it has grown at an annual rate of 6.9% over the past 3 years.
This ETF holds stocks related to countries such as China and Denmark, mainly in America, which has cutting-edge clean energy technology. As of 2022/11/4, America had the largest incorporation ratio by country at 39%, followed by China at 13%. Japan remains at around 2%.
Although the price of the “iShares Global Clean Energy ETF” has dropped drastically recently, it has grown at an annual rate of 6.9% over the past 3 years.
Ticker symbol: HERO
Major exchanges: NASDAQ (US)
Target Index: Creative Video Games and E-Sports Index
Investment Target: Global Equities
Market Price: $17.61 *1
Gain/fall rate over the past year: -40.05% *2
Gain/fall rate over the past 3 years (annual rate): 5.87% *2
Expense rate: 0.50%
Management company: Global X
Major exchanges: NASDAQ (US)
Target Index: Creative Video Games and E-Sports Index
Investment Target: Global Equities
Market Price: $17.61 *1
Gain/fall rate over the past year: -40.05% *2
Gain/fall rate over the past 3 years (annual rate): 5.87% *2
Expense rate: 0.50%
Management company: Global X
*1 As of November 4, 2022
*2 As of October 31, 2022
*2 As of October 31, 2022
The “Global X Heroes (Game & eSports) ETF” is an ETF that invests in stocks related to games and e-sports. We are investing in game and e-sports-related brands in countries such as Japan, South Korea, China, and Sweden, mainly in America. As of 2022/11/4, Nintendo, Capcom, and Konami are included in the top incorporated brands.
As the number of cities locked down and cities refraining from going out due to the spread of the novel coronavirus has increased, it is said that people who haven't played games until now can also enjoy games.
According to the Global X website, the market grew by over 20% from 2019 to 2020, surpassing Hollywood and professional sports to 175 billion dollars. It is expected that the market size will reach 200 billion by 2023. People will continue to interact more in the virtual world in the future.
As the number of cities locked down and cities refraining from going out due to the spread of the novel coronavirus has increased, it is said that people who haven't played games until now can also enjoy games.
According to the Global X website, the market grew by over 20% from 2019 to 2020, surpassing Hollywood and professional sports to 175 billion dollars. It is expected that the market size will reach 200 billion by 2023. People will continue to interact more in the virtual world in the future.
I'm worried that the price of the “Global X Heroes (Game & eSports) ETF” over the past year has dropped drastically to minus 40%, but I would like to look forward to a reversal against the backdrop of market growth.
Wisdom Tree Emerging Markets Equity Quality Dividend Growth Fund $Wisdomtree Emerging Markets Quality Dividend Growth Fund(DGRE.US$
Ticker symbol: DGRE
Major exchanges: NASDAQ (US)
Target Index: Wisdom Tree Emerging Markets Equity Quality Dividend Growth Index
Investment Target: Emerging Market Equities
Market Price: $19.94*1
Gain/fall rate over the past year: -29.62% *2
Gain/fall rate over the past 3 years (annual rate): -5.55% *2
Expense rate: 0.32%
Management company: WisdomTree Investments
*1 As of November 4, 2022
*2 As of October 31, 2022
Major exchanges: NASDAQ (US)
Target Index: Wisdom Tree Emerging Markets Equity Quality Dividend Growth Index
Investment Target: Emerging Market Equities
Market Price: $19.94*1
Gain/fall rate over the past year: -29.62% *2
Gain/fall rate over the past 3 years (annual rate): -5.55% *2
Expense rate: 0.32%
Management company: WisdomTree Investments
*1 As of November 4, 2022
*2 As of October 31, 2022
The “Wisdom Tree Emerging Markets Equity Quality Dividend Growth Fund” is an ETF that invests in stocks in emerging countries such as Latin America and Europe, mainly in Asia. The industry makes diversified investments in many industries such as software fair, healthcare, energy-related, and consumer industries.
What is unique about the “Wisdom Tree Emerging Markets Equity Quality Dividend Growth Fund” is that it focuses on high dividends even though it is a fund that invests in emerging market stocks. However, the operating results in recent years have not been good at all, and the annual rate is -3.25% even when going back to the past 5 years.
What is unique about the “Wisdom Tree Emerging Markets Equity Quality Dividend Growth Fund” is that it focuses on high dividends even though it is a fund that invests in emerging market stocks. However, the operating results in recent years have not been good at all, and the annual rate is -3.25% even when going back to the past 5 years.
Ticker symbol: GAL
Major Exchange: New York Stock Exchange (US)
Target indices: MSCI All Country World Index, Bloomberg US Composite Index
Investment targets: Invest in a wide range of global assets such as stocks and bonds through exchange-traded funds
Market price: $37.76*1
Gain/fall rate over the past year: -16.39% *2
Gain/fall rate over the past 3 years (annual rate): 0.55% *2
Expense rate: 0.35%
Management company: State Street Global Advisors
*1 As of November 7, 2022
*2 As of October 31, 2022
Major Exchange: New York Stock Exchange (US)
Target indices: MSCI All Country World Index, Bloomberg US Composite Index
Investment targets: Invest in a wide range of global assets such as stocks and bonds through exchange-traded funds
Market price: $37.76*1
Gain/fall rate over the past year: -16.39% *2
Gain/fall rate over the past 3 years (annual rate): 0.55% *2
Expense rate: 0.35%
Management company: State Street Global Advisors
*1 As of November 7, 2022
*2 As of October 31, 2022
The “SPDR SSGA Global Allocation ETF” is characterized by investing not in stocks themselves, but in exchange-traded funds (ETFs) that target stocks, etc. It is an ETF that makes diversified investments in various asset classes while investing about 60% in stocks through ETFs. While the US is the center, 30% or more of net assets are invested in assets outside the US, and regional diversification is also being achieved.
Although two indices have been set as benchmarks, the “MSCI All Country World Index” and the “Bloomberg US Comprehensive Index,” it is an actively managed ETF that changes the allocation of ETFs to be invested according to market trends, so results that exceed the benchmark can be expected. However, you should keep in mind that there is also a risk of falling below the benchmark.
The gain/fall rate of the “SPDR SSGA Global Allocation ETF” over the past year was -16%, making it the smallest decline rate among the ETFs listed this time. It can be said that it is the result of diversified investment working.
Although two indices have been set as benchmarks, the “MSCI All Country World Index” and the “Bloomberg US Comprehensive Index,” it is an actively managed ETF that changes the allocation of ETFs to be invested according to market trends, so results that exceed the benchmark can be expected. However, you should keep in mind that there is also a risk of falling below the benchmark.
The gain/fall rate of the “SPDR SSGA Global Allocation ETF” over the past year was -16%, making it the smallest decline rate among the ETFs listed this time. It can be said that it is the result of diversified investment working.
Author: MonJa Editorial Department
Last updated: 2022.11.9
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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