ETF Trends
ETF Trends

Much to the chagrin of hopeful short sellers, momentum stocks and exchange traded funds are bouncing back, eating away at the steep losses incurred during the March/April swoon.

Chinese Internet stocks are participating in the momentum rebound trade as highlighted by the recent performance of the KraneShares CSI China Internet Fund (NasdaqGM: KWEB). KWEB’s net asset value surged 6.1% last month amid a spate of successful Chinese Internet initial public offerings and an earnest rebound for some momentum sectors. [China Internet ETF Soaring in May]

Like other ETFs with ties to Internet and social media stocks, KWEB was taken to task during the momentum sell-off. From its March peak to its May trough, the ETF tumbled 26.1%. However, KWEB has surged 10% in just the past month.

Over that time, KWEB is the best-performing China ETF, outpacing the largest China ETF, the iShares China Large-Cap ETF (NYSEArca: FXI), by 100 basis points.

Renewed ebullience toward Chinese Internet IPOs ahead of Alibaba’s listing, which could arrive in August, has been a positive catalyst for KWEB. Retail site JD.com (NasdaqGS: JD) raised $1.78 billion in May while social media firm Weibo (NasdaqGS: WB) raised $285.6 million in April, according to Bloomberg.

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