It’s been a volatile year for foreign investors with exposure to China, but one fund has had an absolutely meteoric year despite negative price action driven by regulatory crackdowns. Here’s a look at the top five performing ETFs with targeted investment in China by flows.

  1. The KraneShares CSI China Internet ETF (KWEB) was head and shoulders above the rest of funds within the space, bringing in $7.9 billion year-to-date. It’s one of the biggest examples of investors buying the dip in 2021, with regulations out of China hitting the internet and technology sector particularly hard starting mid-year and the price of the fund dropping drastically. Investors piled into the fund, bringing in billions in flows in the latter half of the year in a vote of confidence in strong fundamentals for the sector. The fund carries an expense ratio of 0.76%.
  2. The iShares China Large-Cap ETF (FXI) is one of the original ETFs to focus on China and offers exposure to 50 large-cap companies within China while excluding mega-caps. The fund has brought in $1.84 billion year-to-date and is currently focused primarily in the financial and technology sectors. The fund carries an expense ratio of 0.74%.
  3. The iShares MSCI China ETF (MCHI) is a fund that offers market cap-weighted exposure across China’s large- and mid-cap companies and is primarily focused in technology, followed by financials. The fund offers broad investment into China and has brought in just over $1 billion year-to-date in flows. MCHI carries an expense ratio of 0.59%.
  4. The WisdomTree China ex-State-Owned Enterprisers Fund (CXSE) is a fund that seeks equity exposure to China but excludes state-owned enterprises based on the belief that private companies work more in the interest of shareholders. The fund has brought in almost $695 million year-to-date and is focused largely on the technology- and consumer-related sectors. CXSE carries an expense ratio of 0.32%.
  5. The Direxion Daily CSI China Internet Index Bull 2X Shares (CWEB) is a fund that seeks to offer daily leveraged returns of 2x that of KWEB. So far this year, the fund has brought in $520 million in flows and carries an expense ratio of 1.30%.

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