Checking In: The Asian Combination

Give Global X, the New York-based ETF issuer with over $1.5 billion in assets under management, this much credit: When the firm rolls out a new ETF, chances are that ETF is the first to market in its particular niche. At the very least, Global X puts a new spin on an old theme, but typically, the firm is a first-to-market leader. Such is the case with the Global X FTSE ASEAN 40 ETF ASEA, the topic of today's "Checking In" segment. ASEA made its debut on Feb. 17 and if 2011 were more like 2010 in terms of investor sentiment toward emerging markets, it would be reasonable to expect ASEA to be a rising star in the ETF universe. It may be one day, but that's not the case right now as emerging markets are not part of the 2011 in crowd. ASEA has attracted $1.52 million in assets under management since its debut. If it had been introduced in June or July 2010, chances are that AUM haul would be 10 or 20 times larger. For those not in the know, ASEA stands for Association of Southeast Asian Nations which includes 10 countries. Be advised ASEA the ETF only gives exposure to five of those countries and to say a 0.61% weight to the Philippines is "exposure" is being generours. ASEA is a play on Singapore (41%), Malaysia (33%), Indonesia (15%) and Thailand (10%). All once EM darlings and all have the potential to attain that status again. At this juncture, it's certainly accurate to say ASEA is a unique ETF, though rushing to judge on the basis of AUM and volume statistics probably won't give an investor an accurate tell regarding the ETF's future prospects. After all, ASEA is just five weeks old. ASEA's fate as a worthwhile ETF will be decided when investors turn to emerging markets again and chances are the ETF will see its AUM total and share price bloom under that scenario.