Asian Stocks Just Beat the S&P 500 by 56 Points and Few Investors Noticed

"AIA tracks a concentrated index of 50 large-cap Asian equities across China, South Korea, Hong Kong, Taiwan, and Singapore. The fund captures earnings growth and valuation re-rating of Asia's largest businesses, particularly in technology and financials, without the currency hedging complexity of some regional peers. With a 0.5% expense ratio and $2.2 billion in net assets, it is a liquid, cost-accessible vehicle for the exposure."

"AIA has gained 56.7% over the past year, far outpacing the S&P 500's 13% return over the same period. This gap reflects a broad re-rating of Asian equities driven by improving earnings visibility and easing regulatory pressure on Chinese tech giants. That momentum has carried into 2026, with AIA up nearly 19% year-to-date while the S&P 500 has risen just 1.1%."

"The five-year record reflects the damage done by Chinese regulatory crackdowns and a strong dollar, which together suppressed returns well below U.S. benchmarks, with AIA returning 28.7% against 76.8% for SPDR S&P 500 ETF Trust. Over a full decade, however, AIA has roughly matched the S&P 500, suggesting the fund can keep pace with American equities when macro conditions are supportive."

The iShares Asia 50 ETF (AIA) tracks 50 large-cap Asian equities across China, South Korea, Hong Kong, Taiwan, and Singapore, with significant technology and financial sector exposure. The fund charges a 0.5% expense ratio and holds $2.2 billion in assets. After years of underperformance relative to U.S. equities due to Chinese regulatory crackdowns and currency headwinds, AIA has gained 56.7% over the past year versus the S&P 500's 13% return. Year-to-date 2026 performance shows AIA up 19% while the S&P 500 rose 1.1%, indicating a closing valuation gap. Over a decade, AIA has matched S&P 500 returns. Dividend payouts increased to $2.44 per share in 2025 from $1.89 in 2024, reflecting stronger underlying earnings.

Read at 24/7 Wall St.