Along with the broader CXSE play, more sector-focused China ETFs also rallied this year. For instance, the Guggenheim China Technology ETF (NYSEArca: CQQQ) gained 70.4% so far this year while the Kraneshares CSI China Internet ETF (NYSEArca: KWEB) is up 63.96%. Both funds include e-commerce giants like Tencent, Alibaba, Baidu, Netease, 58.xom, Weibo, JD.com and Sina, among others.
Additionally, the Global X China Materials ETF (NYSEArca: CHIM) also made it among the top ten performers of the year, rising 61.1% year-to-date. The materials ETF is enjoying a recovery as inefficient and illegal production in the nation shuts down, providing underlying companies in the fund healthier profit margins and more breathing room to expand output. Furthermore, the ETF may also benefit from China’s ambitious infrastructure plans with the government embarking on a multi-billion dollar One Belt, One Road program to connect the old Silk Road.
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