A Low Cost, Large Cap ETF for Chinese Equities Exposure | ETF Trends

Getting exposure to the second largest economy’s biggest equities doesn’t have to come at a premium price. With its 0.29% expense ratio more than twice as cheap as the 0.68% category average, the Global X MSCI China Large-Cap 50 ETF (CHIL) offers investors a low-cost solution.

CHL seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI China Top 50 Select Index. The fund invests at least 80% of its total assets in the securities of the underlying index and in ADRs and GDRs based on the securities in the underlying index, which is designed to select the 50 largest equity securities, by free-float market capitalization, of the eligible China equity universe, as defined by the index provider.

CHIL gives investors:

  • Targeted Exposure: CHIL offers large-cap exposure to China, the world’s second largest economy by GDP.
  • ETF Efficiency: In a single trade, CHIL delivers access to a broad basket of 50 large-cap Chinese securities.
  • 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.

The fund is also up 32% the past year.

CHIL Chart

Get Broader Exposure to Emerging Markets (EM)

ETF investors looking for more broad exposure to emerging markets as opposed to a single-country option can also look at the Global X Emerging Markets Bond ETF (EMBD).

EMBD aims to provide investors with strategic exposure to the growing universe of emerging market debt. With a total market size of $26 trillion, emerging market debt represents more than 20% of the global bond market and is a common fixture in income-oriented portfolios. The Fund primarily invests in emerging market debt securities denominated in U.S. dollars, however, the Fund may also invest in those denominated in applicable local foreign currencies. Securities may include fixed-rate and floating-rate debt instruments issued by sovereign, quasi-sovereign, and corporate entities from emerging market countries.

EMBD gives investors:

  • Experienced Portfolio Managers: EMBD’s portfolio managers have extensive track records in actively-managed emerging market debt strategies.
  • Competitive Cost: At a 0.39% Total Expense Ratio, EMBD offers the outperformance potential and risk management of active portfolio managers, at a competitive cost.
  • High Yield Potential: By targeting emerging market debt securities, EMBD aims to offer high yields with low correlations to other fixed income securities.

EMBD Chart

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