Despite the bout of market volatility, investors should not totally forsake investing in the markets and ETFs all together, but people should consider options to safely ride out the environment ahead.
“I think you can’t take your eye off the ball, and the ball is long-term investing,” Jon Maier, SVP and Chief Investment Officer for Global X, said at the Charles Schwab IMPACT 2018 conference.
“You have to think about diversification and your investors’ time horizon and overall goals,” he added.
After the year of volatility, there are a number of markets that have been battered and beaten down, which may be a buying opportunity for long-term investors to get in on the cheap. For example, the selling in the emerging markets, notably China, could be a cheaper entry point for many investors with a long-term horizon.
“Valuations are cheap and China is a long-term play. It’s down a huge amount this year for sure, but China – it is an emerging market – it’s a very special emerging market. It’s the second largest economy in the world. China is not going away,” Maier said.
Global X offers a number of sector-specific China ETF plays to help investors gain targeted exposure to the Chinese markets, including the Global X MSCI China Consumer ETF (NYSEArca: CHIQ), Global X MSCI China Energy ETF (NYSEArca: CHIE), Global XMSCI China Financials ETF (NYSEArca: CHIX), Global X MSCI China Materials ETF (NYSEArca: CHIM), Global X MSCI China Industrials ETF (NYSEArca: CHII) and Global X MSCI China Communication Services ETF (NYSEArca: CHIC).