For the Daring, Sticking With China Sans Banks

CHXF debuted in September 2012 and has already displayed some durability during times of stress for Chinese banks. In the wake of last year’s spikes in China’s overnight and one-week SHIBOR rates, CHXF was noticeably less bad than rival funds that are laden with big bank stocks. [This China ETF Stood Firm as Banks Slid]

“Industrial and Commercial Bank of China (Ticker 1398: HK) has sold off over the past few months, and how the weakening of financial stocks have also impacted the FTSE China 25 Index  (TXINOUU), 55% of which comprises stocks in the financial sector. By comparison, the WisdomTree China Dividend Ex-Financials Index (WTCXFTR), which measures the performance of Chinese dividend paying stocks outside the financial sector (in yellow), has declined just 1.5% since September 30, 2013,” notes Siracusano.

It would not be reasonable to think that if China does experience a full-blown banking/credit crisis that CHXF would appreciate. That is not the claim being made here. However, as negative chatter about Chinese banks has increased in recent months, CHXF has clearly outperformed some rival China ETFs and its index features a decent dividend yield of almost 3.3%, according to WisdomTree data.