After being the epicenter of Covid-19, China is forging ahead with meeting its economic goals, which should provide some fuel to pure-play ETFs focused on that country.
“China will strive to achieve this year’s social and economic goals despite facing domestic and international challenges, according to a commentary published by People’s Daily about a meeting of the Political Bureau of the Communist Party of China (CPC) Central Committee, held recently,” a CGTN report noted.
“The world is going through major changes, and the internal and external environments both have changed for China,” the report added further. “Internally, China has entered the high-quality development stage, prospects are generally good, yet the country is also facing a mixture of difficulties from structural, institutional and periodical problems; externally, peace and development is still the main trend, yet the level of uncertainty is clearly rising, according to the commentary of the People’s Daily, an official newspaper of the CPC Central Committee.”
A few pure-play China exchange-traded funds (ETFs) to watch include the:
- Xtrackers CSI 300 China A-Shares ETF (NYSEArca: ASHR): seeks investment results that correspond generally to the performance, before fees and expenses, of the CSI 300 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.
- Xtrackers CSI 500 China A-Shares Small Cap ETF (NYSEArca: 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.
- Xtrackers MSCI China A Inclusion Equity ETF (NYSEArca: ASHX): The investment 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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