The $723 million SPDR S&P Emerging Asia Pacific ETF (NYSEArca: GMF) tracks an S&P index and has a 39.1% weight to China, including Tencent and Baidu exposure.
The $274 million SPDR S&P Emerging Markets ETF (NYSEArca: GMM), a rival to the iShares MSCI Emerging Markets ETF (NYSEArca: EEM) and the Vanguard FTSE Emerging Markets ETF (NYSEArca: VWO), could hold Alibaba as well. That is an advantage for GML because its two larger rivals will not hold the stock.
Prior to the S&P announcement, the Renaissance IPO ETF (NYSEArca: IPO), KraneShares CSI China Internet Fund (NasdaqGM: KWEB), and the KraneShares CSI China Five Year Plan ETF (NYSEArca: KFYP) were positioned as the most credible Alibaba ETF destinations. That trio retains its status as the most immediate ETF landing places for Alibaba. IPO can add the stock after its fifth trading day while KWEB and KFYP will add Alibaba shares after eleven trading days. [What Alibaba’s Valuation Means for ETFs]
Other China and emerging markets ETFs that benchmark to S&P indices where Alibaba could land at some point include the First Trust China AlphaDEX Fund (NYSEArca: FCA) and the PowerShares S&P Emerging Markets High Beta Portfolio (NYSEArca: EEHB).
SPDR S&P China ETF
Tom Lydon’s clients own shares of EEM and QQQ.