The Strategic Approach to China ETFs

There are nearly 40 exchange traded funds on the market today dedicated to either Chinese equities or bonds and the number is growing.

And as is the case with scores of U.S.-focused ETFs that have similar names, advisors and investors need to remember that no two China ETFs are exactly the same. On the upcoming webcast, The Expanding Chinese Equity Opportunity, which will take place at 2PM Eastern time on Thursday Nov. 20, Matthew Bartolini and Jared Rowley of State Street Global Advisors will highlight how investors can gain broader exposure to Chinese equities with the SPDR S&P China ETF (NYSEArca: GXC).

Now seven and a half years old, GXC is one of the largest U.S.-listed China ETFs with over $980 million in assets under management. On Thursday’s webcast, Bartolini and Rowley will highlight, among other factors, how GXC’s deeper roster of stocks and lower fees can help boost client returns.

With an annual fee of 0.59%, GXC holds nearly 600 stocks compared to a 0.74% expense ratio and just 52 stocks held by the the iShares China Large-Cap ETF (NYSEArca: FXI). As Bartolini and Rowley will discuss, those differences can lead to significant performance gaps between those two ETFs – gaps that favor GXC. [Proper Use of China ETFs]

Over the three-year period ending ending Nov. 17, GXC rose 29%, more the double the returns offered by FXI over the same time frame. GXC was also 160 basis points less volatile than its rival over that period.

Chart Courtesy: ETF Replay