Exchange-traded fund (ETF) investors who still aren’t sold on China can look forward to robust growth, according to economists at Oxford Economics. This should present opportunities for China-focused ETFs that investors may want to give a second look.

A CNBC report stated that data from “China’s General Administration of Customs showed Monday that the country’s dollar-denominated exports rose 9.5% from a year ago while imports declined 2.1% in the same period. Economists in a Reuters poll had expected a 7.1% rise in the August export figure from a year ago, while imports were forecast to edge 0.1% higher in the same period.”

“We expect export growth to stay robust in the rest of the year as the global economy recovers,” economists at Oxford Economics wrote in a note referring to China’s latest trade data. “We anticipate a record-breaking surge of global growth on the quarter in Q3 due to eased lockdown restrictions, followed by solid, albeit slower, growth in Q4. This bodes well for China’s exports outlook.”

^MSCN Chart

^MSCN data by YCharts

3 ETFs to consider include:

  1. Xtrackers Harvest CSI 300 China A-Shares ETF (ASHR): seeks investment results that correspond generally to the performance, before fees and expenses, of the CSI 300 Index. The fund will normally invest at least 80% of its total assets in securities of issuers that comprise the underlying index. The underlying index is designed to reflect the price fluctuation and performance of the China A-Share market and is composed of the 300 largest and most liquid stocks in the China A-Share market. The underlying index includes small-cap, mid-cap, and large-cap stocks.
  2. Xtrackers Harvest CSI 500 China-A Shares Small Cap ETF (ASHS): seeks investment results that correspond generally to the performance, before fees and expenses, of the CSI 500 Index. The index is designed to reflect the price fluctuation and performance of small-cap companies in the China A-Share market and is composed of the 500 smallest and most liquid stocks in the China A-Share market. Under normal circumstances, the fund invests at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in A-Shares of Chinese small-cap issuers or in derivative instruments and other securities that provide investment exposure to A-Shares of Chinese small-cap issuers.
  3. Xtrackers MSCI China A Inclusion Equity ETF (ASHX): seeks investment results that correspond generally to the performance, before fees and expenses, of the MSCI China A Inclusion Index. The fund will normally invest at least 80% of its total assets in securities (including depositary receipts in respect of such securities) of issuers that comprise the underlying index. The underlying index is designed to track the equity market performance of China A-Shares that are accessible through the Shanghai-Hong Kong Stock Connect program or the Shenzhen-Hong Kong Stock Connect program.

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