The iShares Global Clean Energy ETF (NYSEArca: ICLN) is another alternative energy fund that has been dragged down by China. ICLN’s 24.5% weight to China, just below the ETF’s exposure to U.S. stocks, has sent the fund tumbling 14.5% over the past month.
Patient investors should keep an eye on the valuation gap between Chinese stocks trading in the U.S. and Hong Kong and A-shares trading on mainland China.
China H-shares-related ETFs are also showing more attractive valuations relative to the China A-shares market where the Shanghai Composite and the small-cap Shenzhen Composite are still relatively expensive, even after the correction, trading at an average price-to-earnings ratio of about 20 and 50 times, respectively. [Interested in China? H-Shares ETFs Are a Cheap Play.]
Guggenheim Solar ETF
