FXI’s roster of 26 stocks will grow to 50 next month when the ETF transition to the FTSE China 50 Index at the close of U.S. markets on Sept. 19.
FXI is not the only China ETF that has added assets this month. The iShares MSCI China ETF (NYSEArca: MCHI) and the SPDR S&P China ETF (NYSEArca: GXC), two ETFs with reputations for outperforming FXI over long-term time frames, have gained $141.6 million and $65.3 million, respectively, this month. Over the past three years, GXC is up 30.4% compared to 19.2% for FXI. [Bigger Not Better for This China ETF]
Part of the reason investors are returning to China ETFs is compelling valuations. Those compelling valuations are also luring investors to A-shares ETFs. The CSI 300 Index, which tracks stocks listed on the Shanghai and Shenzhen exchanges, trades at a price-to-earnings ratio of less than 10, the lowest in over a decade, while Chinese shares listed on the Hong Kong exchanges trade at over 12 times earnings. A-shares are trading at their largest discount to H-shares in five-years. [An A for A-Shares ETFs]
The Deutsche X-trackers Harvest CSI 300 China A-Shares Fund (NYSEArca: ASHR), the largest U.S.-listed China A-shares ETF, has gained 8.2% this quarter while adding almost $56 million of its $340.7 million in assets under management this month.
iShares China Large-Cap ETF
