The materials sector does not always command a lot of attention in the U.S., but it is an important part of the emerging markets equation. Good thing the Global X China Materials ETF is up more than 59% this year.
CHIM tracks the Solactive China Materials Total Return Index. Investors should be aware that this is a small ETF with just over $4.2 million in assets under management. CHIM has a standard deviation of 29.1% and trades at a discount to the U.S. materials sector and the MSCI Emerging Markets Index.
Emerging Markets Internet & Ecommerce ETF (NYSEArca: EMQQ)
On the back of stellar performances by Chinese Internet stocks, the Emerging Markets Internet & Ecommerce ETF is up a whopping 62.5% year-to-date.
The emerging market internet segment has also capitalized on the renewed focus on growth-oriented stocks earlier this year, along with the search for greater value in international markets, such as developing company stocks, as the U.S. equity rally pushes into its ninth year with even pricier valuations.
China is the world’s largest Internet market with more Internet users than the U.S. population, but many emerging markets have small Internet penetration. That bodes well for EMQQ’s long-term growth potential.
Tom Lydon’s clients own shares of EMQQ and VWO.