This $28 Million Asia ETF Bet Now Makes Up 17% of One Portfolio -- Here's What to Know

On Wednesday, Zurich-based BFI Infinity Ltd. disclosed a buy of 132,421 shares of the iShares MSCI All Country Asia ex Japan ETF (NASDAQ:AAXJ), an estimated $12.30 million trade based on quarterly average pricing.

What happened

According to a SEC filing published Wednesday, BFI Infinity Ltd. bought 132,421 additional shares of the iShares MSCI All Country Asia ex Japan ETF (NASDAQ:AAXJ), with the estimated transaction value at $12.30 million based on the quarter’s average closing price. The quarter-end value of the fund’s AAXJ stake increased by $12.64 million, a figure that includes both new purchases and the ETF’s price appreciation.

What else to know

AAXJ now comprises 17.21% of the fund’s 13F reportable AUM after the filing.

Top holdings after the filing:

• NASDAQ:AAXJ: $27.65 million (17.2% of AUM)
• NYSEMKT:VTI: $20.17 million (12.6% of AUM)
• NYSEMKT:VGK: $19.28 million (12.0% of AUM)
• NASDAQ:QQQ: $11.57 million (7.2% of AUM)
• NASDAQ:GRID: $10.70 million (6.7% of AUM)

As of January 13, shares of AAXJ were priced at $98.20, up 43.9% over the past year and well outperforming the S&P 500 by 24.54 percentage points.

ETF overview

ETF snapshot

• AAXJ's investment strategy seeks to track the performance of the MSCI All Country Asia ex Japan Index, providing exposure to both developed and emerging Asian equity markets.
• The portfolio comprises equities from 11 countries or regions, with holdings diversified across sectors and market capitalizations, reflecting the index's free float-adjusted market cap weighting.
• Structured as an exchange-traded fund, the vehicle provides access to Asian markets.

The iShares MSCI All Country Asia ex Japan ETF delivers broad-based exposure to Asian equities, excluding Japan, through a single, liquid security. The fund leverages a transparent, rules-based index methodology to capture growth opportunities across both developed and emerging Asian economies. Its scale and diversified portfolio position it as a core holding for investors seeking regional diversification in Asia.

What this transaction means for investors

When a single regional ETF grows to more than 17% of a portfolio, it certainly seems to reflect a very deliberate allocation decision rather than a one-off trade. That’s particularly notable here because the position is up a staggering 44% over the past year, further suggesting this thesis is structural and not tactical.

The fundamentals help explain why. The ETF now holds nearly $3.25 billion in assets and tracks a broad benchmark spanning both developed and emerging Asia, excluding Japan. Its portfolio includes more than 900 holdings across technology, financials, and consumer sectors, with giants Taiwan Semiconductor, Tencent, Samsung Electronics, and Alibaba among the largest weights. Despite the strong run, the fund still trades with a P/E around 20 and carries a beta of just 0.75, offering growth exposure without full market volatility.

As far as BFI Infinity’s portfolio, alongside this position sit broad U.S. exposure and European equities, suggesting this is about geographic diversification rather than a wholesale risk-on pivot. Asia ex Japan provides exposure to manufacturing scale, digital adoption, and domestic consumption trends that are less correlated with U.S. mega-cap cycles. Ultimately, it looks like this allocation reflects confidence that Asia’s growth story still has room to run beyond a single strong year.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Vanguard Total Stock Market ETF. The Motley Fool has a disclosure policy.