IEMG rose 0.22 percent despite the market volatility.
A Tablespoon of China
China will no doubt be a major beneficiary if and when a permanent trade deal materializes and index providers like MSCI have been quick to act as barriers to entry for the once restrictive markets in the second largest economy begin to soften. MSCI Inc. announced it would increase the weight of China A shares in the MSCI Indexes by increasing the inclusion factor from 5% to 20% in three steps.
The decision came after an extensive global consultation with a large number of international institutional investors, including asset owners, asset managers, broker/dealers and other market participants worldwide.
“Regulations have loosened up a little bit in China so now you can buy mainland China stocks,” said Lydon.
One way to take advantage of these A-shares is through the Xtrackers Harvest CSI 300 China A ETF (NYSEArca: ASHR). It gives investors the opportunity to invest in the largest and most liquid the second largest economy has to offer.
“This is something new where if you’re seeing these trade talks continue to provide growth opportunities in China, especially after the fact, this is something to consider,” Lydon said.
ASHR finished the trading session with a 0.85 percent gain.
“We’re in a world of more volatility,” said Lydon. “The big thing is don’t pay too much and diversify outside the U.S.”
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