The broader APAC approach is appealing because each market has different drivers: Japan has rate normalisation, Korea has Value-up reforms, Singapore has established banks, and Southeast Asia offers longer-term financial deepening.
That diversification is the strongest argument for the ETF versus simply owning Singapore’s three banks. I also like the concentration caps.
However, I would not chase it based on the ~5% distribution or recent returns alone. The bigger question is whether earnings and ROE remain resilient if rates fall, credit costs rise or regional growth slows. Low P/B is attractive only when the underlying businesses continue generating strong returns.
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