ETF Trends
ETF Trends

Emerging markets have been scorching this year. Many exchange traded funds (ETFs) are up by triple digits since the market’s low on March 9. Although not up as sharply as some markets, China continues to be the belle of the ball.

There are three reasons in particular to watch China as its economy continues to evolve into a global powerhouse:

  • In October, Chinese manufacturing rose at its fastest pace in 18 months.  China’s PMI was at 55.4, marking the seventh straight month that the index has risen, reports Chris Oliver at MarketWatch.
  • Export orders climbed to 55.6 from 54.4, the fifth straight month of gains, and the most robust pace seen since June 2007.
  • The government has said that gross domestic product increased by 8.9% in the third quarter and 7.9% in the second. (Five things China needs).
  • China’s economy has been strengthening on improved domestic demand, a nice change for the export-driven country. (More about China’s economy).
  • The nation’s contribution to global economic growth in 2008 amounted to 22%, surpassing the United States to be the world’s number one contributor, states Wang Zongkai and Xie Peng of China View. That figure is expected to reach 50% this year.

For more stories on China, visit our China category.

  • SPDR S&P China (NYSEArca: GXC): 55.8% year-to-date

  • iShares FTSE/Xinhua China 25 Index (NYSEArca: FXI): up 47.5% year-to-date

  • Claymore/AlphaShares China All-Cap ETF (NYSEArca: YAO)

Kevin Grewal contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.