As most investors would know, the past month or two hasn't exactly been kind to the S&P/ASX 200 Index (ASX: XJO) and ASX shares. As it currently stands, the ASX 200 remains down a rather depressing 6.44% so far in 2022, and 6.9% down from its last peak of 7,632.8 points that we saw last August.
But it was even worse for ASX shares just a week or two ago. Back on 27 January, the ASX 200 fell as low as 6,838.3 points. That represents a 10.4% drop from the past record high. And that meant that the ASX 200 was officially in correction territory. A correction is the arbitrary term for a 10% or greater drop from the most recent all-time high.
But while the ASX 200 has now recovered from its correction, there are a couple of ASX exchange-traded funds (ETFs) that are still very much in correction territory. Let's take a look…
2 ASX ETFs in correction territory today
BetaShares Asia Technology Tigers ETF (ASX: ASIA)
This tech-focused ETF from BetaShares is one. ASIA is a fund that invests in a basket of tech shares that are domiciled across Asia. A plurality of its holdings (43.9%) hail from the People's Republic of China. But other countries such as Singapore, Taiwan, South Korea and India are also represented. You'll find names like Taiwan Semiconductor Manufacturing Co, Samsung, Tencent, JD.com and Alibaba here.
Until early 2021, this ETF had been on a very impressive run. But more recently, ASIA units have been battered by the market's distaste for tech shares, as well as concerns over investing in Chinese companies. Since its last all-time high of $14.36 that we saw back in February last year, BetaShares Asia Technology Tigers units have fallen by a nasty 35% or so, going off of the $9.02 they are trading at today. That's well over correction territory.
ETFs FANG+ ETF (ASX: FANG)
The ETFs FANG+ ETF is another ASX fund that has seen its units enter a correction in recent months. This ETF from ETF Securities is a relatively concentrated ETF that only holds 10 underlying companies. These (as the name suggests) are taken primarily from the United States FANG stocks. FANG (or FAANG) is the collective name of Facebook, now Meta Platforms Inc (NASDAQ: FB), Apple Inc (NASDAQ: AAPL), Amazon.com Inc (NASDAQ: AMZN), Netflix Inc (NASDAQ: NFLX) and Google, now Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL). Its other holdings include Microsoft Corporation (NASDAQ: MSFT) and Tesla Inc (NASDAQ: TSLA). As well as the Chinese companies Alibaba and Baidu Inc.
Since last peaking at over $19 a unit in November last year, FANG is now in a correction since its unit price is today at $16.23 – a good 14.8% away from that high. We can probably apportion a lot of the blame for this fall at Meta Platform's feet. Meta dropped a whopping 26% or so last week after fronting up with a disappointing quarterly earnings report. It's now down 30% year to date in 2022 so far.
