Pacific

 

 

Portfolio Role

Pacific funds specifically target companies in and around the western edge of the pacific ocean.  They have a focus on Asian markets (particularly Japan) but may also include stocks in Australia and New Zealand.

Some investors like investing in specific regions based on global economic trends.  Setting aside the value of future predictions, it’s easy to see that Pacific stocks are reasonably uncorrelated to the US stock market and perhaps could be a good diversification option in the right portfolio.

 

Country Coverage

• Australia
• Hong Kong
• Japan
• Malaysia
• New Zealand
• Singapore

 

Notes

Because Japan makes up such a large percentage of the Pacific market, many index funds labeled “Pacific” actually exclude Japan to focus on the other countries.  Be sure to understand the holdings of any fund you purchase.