China index fund etf
China is the most populous nation on Earth, and its rising economy over the past 20 years has given what many still consider to be an emerging market an impressive growth trajectory for many of its companies. Chinese growth stocks have produced strong returns over time, and U. Exchange-traded funds offer a quick way to get diversified exposure to Chinese stocks, yet investors have to choose among different China ETFs with different approaches toward investing there. The following five China ETFs offer a variety of ways for you to get the China exposure you want in your portfolio. The slight differences in approach among the three iShares China ETFs reveal the various ways investors can look at Chinese stocks. Hong Kong reverted to Chinese control in , and for a long time, the only way for Western investors to get access to Chinese companies was through stocks listed on the Hong Kong Stock Exchange.
The Best ETFs for the Shanghai Composite Index
China is the most populous nation on Earth, and its rising economy over the past 20 years has given what many still consider to be an emerging market an impressive growth trajectory for many of its companies. Chinese growth stocks have produced strong returns over time, and U. Exchange-traded funds offer a quick way to get diversified exposure to Chinese stocks, yet investors have to choose among different China ETFs with different approaches toward investing there.
The following five China ETFs offer a variety of ways for you to get the China exposure you want in your portfolio. The slight differences in approach among the three iShares China ETFs reveal the various ways investors can look at Chinese stocks.
Hong Kong reverted to Chinese control in , and for a long time, the only way for Western investors to get access to Chinese companies was through stocks listed on the Hong Kong Stock Exchange. Today, the Hong Kong ETF has its largest concentrations in the real estate and insurance industries, which together make up almost half of the fund's assets.
The Hong Kong space has outperformed pure Chinese stocks over the past five years by a substantial margin, largely reflecting China's slowdown over the period. The portfolio includes some of the most important companies in the emerging-market nation, including giants in the internet and telecommunication services industries.
However, more than half of the fund is invested in financial stocks, and for a long time, some investors have feared that the level of state control over holdings in the fund make the China Large-Cap ETF more susceptible to adverse government policies. The SPDR seeks to invest in all publicly traded companies above a certain size that are available to foreign investors, with more than holdings in its portfolio.
The other two main internet ETFs specifically look to go beyond U. Its asset allocation reflects the importance of the internet in China, with a third of assets in IT, almost a quarter in financials, and weighted exposure to consumer discretionary, industrials, and real estate stocks rounding out the top sectors.
Finally, China is a big enough market for specialty ETFs to arise. The KraneShares ETF includes stocks of Chinese internet companies , including those that run search engines, social-media sites, microblogging services, and e-commerce portals.
The fund has a shorter history than its peers, but its short-term performance has been particularly impressive as the growing consumer class in China starts to spend more discretionary income.
As China opens up to investment, the best ETFs are those that give exposure to the fastest-growing segments of the economy. Despite being the largest by assets, iShares China Large-Cap will be at a disadvantage to rivals that have greater IT exposure, unless it can change its target and rid itself of the troubling state-owned enterprise stocks that make some investors so nervous. The KraneShares offering is an interesting way to drill down solely on the high-growth internet arena.
Jul 23, at AM. As the Fool's Director of Investment Planning, Dan oversees much of the personal-finance and investment-planning content published daily on Fool.
With a background as an estate-planning attorney and independent financial consultant, Dan's articles are based on more than 20 years of experience from all angles of the financial world. Follow DanCaplinger. Image source: Getty Images. Stock Advisor launched in February of Join Stock Advisor. Prev 1 Next.
iShares MSCI China ETF. China Equities.
Setting your default requires the storage of a cookie for the purpose of remembering your choice. For more information, please read our Privacy Policy. The Fund and the Index are rebalanced quarterly. ET and do not represent the returns an investor would receive if shares were traded at other times. Performance data quoted represents past performance, which is not a guarantee of future results.
China has been growing rapidly since it initiated market reforms in The Shanghai Composite Index, launched in , follows all of the class A and class B shares that are listed on the Shanghai Stock Exchange, which is the biggest stock exchange in mainland China.
In spite of the the U. There are about 35 exchange-traded funds ETFs catering to these investors, not including leveraged or inverse funds.
China's index funds could grow ten-fold in a decade: Hua An
The typical U. That may be a big problem going forward. The chief investment officer at fund behemoth Vanguard predicted at the end of last year that global stocks would outperform U. Yes, China! Just as the U.
