For its part, CXSE is up more than 13% this year, putting the fund well ahead of some of the largest traditional China ETFs trading in the U.S.
For slightly higher multiples, investors can tap some compelling risk/reward opportunities with CXSE this year.
“But for a 3-point-higher P/E multiple expressed above, with the tilt to companies growing earnings at faster clips, I think a Chinese tilt to ex-state-owned enterprises reflects an interesting opportunity to capitalize on the most hated asset class of 2018,” according to WisdomTree.
CXSE is not WisdomTree’s first foray into emerging markets ETFs that explicitly steer clear of state-owned enterprises. The issuer also offers the WisdomTree Emerging Markets ex-State-Owned Enterprises Fund (NYSEArca: XSOE).
For more information on the Chinese markets, visit our China category.