Institutional money appears ready to come back to China again after a tumultuous 2021 that saw the Evergrande Crisis and heavy regulations on the tech industry. As such, here are a pair of Global X ETFs to consider.
“Sequoia China, led by investment guru Neil Shen, has raised about $9 billion for investments in technology and healthcare, according to people familiar with the matter, overcoming the fundraising challenges that have beset the venture capital sector,” a Fortune magazine article said.
For exchange traded fund (ETF) investors looking to tail the institutional money, one fund to consider is the Global X MSCI China Information Technology ETF (CHIK). CHIK tries to reflect the performance of the large- and mid-capitalization segments of the MSCI China Index that are classified in the Information Technology Sector as per the Global Industry Classification System.
At a 0.65% expense ratio, CHIK investors get:
- Targeted exposure: CHIK is a targeted play on the information technology sector in China — the world’s second-largest economy by GDP.
- ETF efficiency: In a single trade, CHIK delivers access to dozens of information technology companies within the MSCI China Index, providing investors an efficient vehicle to express a sector view on China.
- All share exposure: The index incorporates all eligible securities as per MSCI’s Global Investable Market Index Methodology, including China A, B, and H shares, Red chips, P chips, and foreign listings, among others.
An Opportunity in Healthcare
For opportunities in healthcare that are targeted at China, consider the Global X MSCI China Health Care ETF (CHIH). CHIH seeks to provide investment results that correspond generally to the price and yield performance of the MSCI China Health Care 10/50 Index, which tracks the performance of companies in the MSCI China Index (the “parent index”) that are classified in the health care sector, as defined by the index provider.
Also, with a 0.65% expense ratio, the fund gives ETF investors:
- Targeted exposure: CHIH is a targeted play on the healthcare sector in China — the world’s second-largest economy by GDP.
- ETF efficiency: In a single trade, CHIH delivers access to dozens of healthcare companies within the MSCI China Index, providing investors an efficient vehicle to express a sector view on China.
- All share exposure: The index incorporates all eligible securities as per MSCI’s Global Investable Market Index Methodology, including China A, B, and H shares, Red chips, P chips, and foreign listings, among others.
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