Believe it or not, opening a brokerage account in the United States is one of the most versatile ways to invest in Asia.
The NASDAQ Stock Market has the highest concentration of Asian stocks outside of the continent itself, with 197 different stocks from China, Japan, India, the Philippines and several more. There are also international listings on the New York Stock Exchange; but less than on the NASDAQ.
In fact, some companies which are headquartered in Asia don’t even list their own country’s stock market, but choose to list on the NASDAQ instead. Major Chinese companies such as Baidu (NASDAQ: BIDU) and Home Inns (NASDAQ: HMIN), for example, have yet to be listed on any other stock exchange in Asia.
ETFs and Mutual Funds Can Help You Invest in Asia
Besides that, the U.S. has a large amount of diversity in their offering of exchange traded funds (ETFs). You may choose to invest in diversified funds that are made up of stocks from individual countries such as Malaysia (NYSEARCA: EWM) and Hong Kong (NYSEARCA: EWH). Some ETFs are even leveraged, and some short stocks. One that happens to do both is ProShares UltraShort MSCI Japan (NYSEARCA: EWV) which shorts Japanese equities with a 2x leverage.
Of course, opening a U.S. brokerage account also gives you access to American stocks, as well as many throughout the world in places such as Europe and South America. This is definitely worth taking into consideration for those looking to diversify outside of Asia stocks.
With all of that said, the best way to invest in Asia is being here on the ground. The vast opportunities in frontier markets, for example, can’t be found on a stock exchange.
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