AIA ETF

AIA does not perform as well as other similar products. AIA's limited focus on Indian stocks could negatively impact its future success. AIA presents attractive earnings potential at a low cost, and the risk-reward ratio on the charts is promising.

iShares Asia 50 ETF has been affected by a recent China flash crash and general major declines in Chinese indices. China's internal issues, such as the collapsing property market and demographic concerns, further contribute to the underlying risks of Chinese stocks. Technical effects, such as forced selling brought on by general declines, could cause measures by regulators that lose allocator trust. Especially the risk of market exit limits.

The Federal Reserve held its benchmark interest rate steady at a range of 5.25%-5.50% on Dec 13. However, the Fed hinted at three 25-bp rate cuts next year.

iShares Asia 50 ETF is concentrated toward Chinese companies and the technology sector. Since the start of the pandemic, AIA has underperformed SPY by a very wide margin. Its relative valuation and reversion to the mean potential make it relatively attractive. AIA is a Buy on a 3-5-year time frame. I think it will appreciate and outperform SPY.

While some general truth exists in the assertion that American investors should stick with U.S.-based investments for familiarity and performance reasons, the best international ETFs may provide a layer of intrigue for the adventurous. First and foremost, diversification may be a value attribute heading into broader market uncertainty.

Bull vs. Bear is a weekly feature where the VettaFi writers' room takes opposite sides for a debate on controversial stocks, strategies, or market ideas — with plenty of discussion of ETF ideas to play either angle. For this edition of Bull vs.