iShares Core MSCI Pacific ex-Japan UCITS ETF USD (Acc)

Issuer: iShares

Asset Class: Equity

TER: 20bps

Trading Currency: USD

Pays Income: False

Listing Date: 15 Sep 2010

Ticker: CPXJ

ISIN: IE00B52MJY50

This fund offers targeted exposure to large and mid-capitalisation companies across four developed countries in the Pacific region, specifically excluding Japan. This provides investors with a precise tool to invest in the economic growth and corporate performance of Australia, Hong Kong, New Zealand, and Singapore. The portfolio is diversified across various sectors, with significant allocations typically found in financials, materials, and real estate, reflecting the economic composition of these markets. By physically tracking its benchmark index through an optimised sampling strategy, the fund aims to deliver returns that are representative of the performance of these specific Pacific economies, providing a core holding for this distinct region.

This investment can serve as a strategic component for portfolio diversification. For investors with heavy exposure to North American, European, or Japanese markets, it offers a distinct geographical allocation, potentially reducing overall portfolio risk and capturing different economic cycles. It is particularly useful for those who want to fine-tune their Asian exposure by separating Japan, a major market with its own unique dynamics, from the rest of the developed Pacific. As an accumulating vehicle, all dividends and income generated by the underlying holdings are automatically reinvested back into the fund. This feature promotes the power of compounding and is ideal for investors focused on long-term capital growth objectives, as it avoids generating periodic taxable income events.