An index fund is a type of investment fund that replicates the performance of a market index by holding all (or a representative sample of) the stocks in that index.

Popular Asian Index Funds/ETFs

FundTracksExpense Ratio
iShares MSCI Japan (EWJ)Japan broad market0.50%
iShares China Large-Cap (FXI)China top 500.74%
iShares India 50 (INDY)Nifty 500.90%
iShares MSCI South Korea (EWY)Korea broad market0.59%

Why Index Funds Are Popular

  • Low cost: 0.03-0.50% vs 1-2% for active funds
  • Diversification: one fund = hundreds of stocks
  • Performance: most active managers underperform their index over 10+ years

How to Invest in Asian Markets via ETFs

Most major brokers (Interactive Brokers, eToro) offer Asian market ETFs. You can buy a single Japan ETF instead of researching individual Japanese stocks.