Put simply, FXI has lagged those rivals long-term holding periods. S&P Capital IQ also has a marketweight rating on GXC.
“It has $900 million in assets and has a 0.59 percent expense ratio. However, it has a wider $0.12 bid ask spread. There are more than 200 holdings with less exposure to financials and telecom yet more to other sectors such as information technology,” the research firm said of GXC.
While there are important differences between the various China ETFs, the group shares at least one trait in common: The potential to be further boosted by compelling valuations.
“In spite of an unimpressive 1.2 percent performance so far this year, absolute valuations of the Shanghai stock index (as proxied by the MSCI China index) justify a modest excess exposure to the nation’s equities. At 9.8x one-year forward earnings, India’s positive-adjusted, price earnings multiple (p/e) is lower than its record high (39.6x), just 5 points above its all-time low, and 3.8 points below its historical average (16.7x). In addition, it trades at a discount to all its regional rivals. Also, when compared to the broader markets, aggregate Chinese shares are far cheaper than those of emerging Asia, Asia excluding Japan, Asia and all emerging markets,” according to S&P Capital IQ. [A Stellar China ETF]
SPDR S&P China ETF
