Just as investors departed FXI earlier this year, EWH was hit by outflows as well. However, stocks listed in Hong Kong still offer substantial discounts relative to their mainland counterparts.
Over 260 U.S.-listed ETFs feature some exposure to China with marquee names including the iShares China Large-Cap ETF, which is the largest China-related ETF that tracks Chinese companies listed on the Hong Kong stock exchange. H-shares, or the Chinese stocks trading in Hong Kong are some of the least expensive stocks in the world and FXI has a price-to-earnings ratio below that of the MSCI Emerging Markets Index.
Related: 15 Cheap Emerging Market ETFs
EWH “echoes this pattern, although its on-balance volume indicator suggests it needs to test that breakout. By measuring the amount of money changing hands on rally days and comparing that to money on declining days, on-balance volume gives us an idea of the demand for the ETF. Right now, the indicator is still in decline for the year, which makes it a better idea to put this one on the radar screen for analysis in two or three weeks,” according to Barron’s.
iShares MSCI Hong Kong ETF
