The average dividend yield of PetroChina (NYSE: PTR) and Cnooc (NYSE: CEO) is 3.85%, compared to an average yield of less than 3% for Exxon Mobil (NYSE: XOM) and Chevron (NYSE: CVX). PetroChina and Cnooc, a combined 9.3% of CHXF’s weight, are up 29.6% and 8.7%, respectively, this year. Chevron is up just 1.7%. [Stick With China Without the Banks]
Energy is CHXF’s largest sector weight at 24.3%, more than double FXI’s allocation to the same group.
There is a positive trade-off to CHXF’s lack of financial services exposure even at a time when Chinese banks are soaring: Lower volatility. Since its inception in May 2012, the WisdomTree China Dividend ex-Financials Index (WTCXF), CHXF’s underlying index, has had annualized volatility of 14.9%, according to WisomTree data. By comparison, FXI’s three-year standard deviation is 24.3%.
In the aforementioned May note, WisdomTree pointed out that the largest dividend growth sectors in China were consumer discretionary and utilities with average payout growth of about 43%. Those sectors combine for over 15% of CHXF’s weight.
WisdomTree China Dividend Ex-Financials Fund
