The BetaShares Asia Technology Tigers ETF (ASX: ASIA) has been a fairly disappointing performer in 2022 thus far. Year to date, this ASX exchange-traded fund (ETF) has lost a painful 26.22% of its value. It has fallen from around $9.40 a unit at the start of the year to the $6.95 we see today.
So it might come as something of a surprise to learn that this fund was in the top three best-performing ASX ETFs of November. Yep, over the month just passed, the BetaShares Asia Tigers ETF rose from $5.68 to the $6.74 price it closed at yesterday. That's a gain worth an impressive 18.66%.
As it happens, all three of the ASX 's highest-performing ETFs last month had large positions in the Chinese markets.
In addition to the BetaShares Asia Tigers ETF, the iShares China Large-Cap ETF (ASX: IZZ) and the iShares Asia 50 ETF (ASX: IAA) both had stellar months too.
This optimism could reflect anticipation that China could, at last, begin to relinquish its long-held and ultra-strict 'zero-COVID' policies that the country has stuck to since the start of the pandemic in 2020.
China has been facing rolling protests in recent weeks over its lockdown-happy policies. Those are policies that have been abandoned in most other countries of the world.
So if China does indeed start to open up, is the BetaShares Asia Tigers ETF a good way to play this reopening?
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Is the BetaShares Asia Tigers ETF a bet on a reopened China?
Well, let's look at the fund's underlying portfolio to gauge this.
So the BetaShares Asia Tigers ETF doesn't just invest in China and Chinese companies. It is exposed to other countries like Taiwan, South Korea and India as well.
Saying that, almost half of this ETF's portfolio is weighted towards Chinese and Hong-Kong listed shares. Its third, fourth, fifth, seventh and eighth largest shares are all Chinese. They include names like Alibaba, Tencent Holdings, Pinduoduo and JD.com.
So while the BetaSahres Asia Tigers ETF is not a China pure-play, it is certainly highly exposed to the Chinese markets. The past month has proven that it is a valid investment for anyone looking to potentially benefit from a Chinese reopening. Although perhaps not quite as China-exposed as the iShares China Large-Cap ETF.
But remember, China has to officially reopen first. That is certainly not a given at this point, whatever the markets are hoping for.
