Several notable China and Asia-focused ETFs sent up buy signals on Tuesday, crossing their respective 200-Day Simple Moving Averages. The news comes following yesterday’s strong start for Chinese stocks in Hong Kong, posting their best start to the year since 2018, with investors perhaps buoyed by the prospect of the continued reopening of the mainland’s zero-COVID policies. As such, investors may want to keep an eye on a few China buy signal ETFs, like the Franklin FTSE China ETF (FLCH).
FLCH hit $19.29 as of the market close, continuing to pass its $17.34 50-Day Simple Moving Average and crossing just past its $19.19 200-Day SMA. That price is also the highest point it has reached since the middle of December, with the price on an overall upswing since a low point in November.
The ETF has hovered around its 200-Day SMA since that December date, outperforming its ETF Database Category Average and Factset Segment Average by about 230 and 370 basis points respectively. FLCH charges just 19 basis points for its exposures. FLCH has seen 163.6% in five-day volatility, as well.
Elsewhere, the 58 basis point fee iShares MSCI China ETF (MCHI) also surpassed its 200-day SMA, hitting $49.09 compared to its open price of $48.7 and its 200 Day SMA of $48.34. The strategy has also outperformed both the ETF Database Category Average and the Factset Segment Average by similar margins, with slightly higher volatility over the last five days at 167.4%.
Finally, the Invesco Golden Dragon China ETF (PGJ) also surpassed its 200 Day SMA of $27.49 today, hitting $28.37 as of market close. PGJ, which charges 70 basis points, the most of the trio, also tracks an index like the other two aforementioned strategies, trying to spread exposure across the Chinese economy.
PGJ has also outperformed its ETF Database Category Average and Factset Segment Average, as well as outperforming both MCHI and FLCH with a one-month return of 11.33%.
With a new year comes new opportunities, and while the road has been bumpy for China-focused investors of late, investors may want to revisit a trio of China buy signal ETFs that could be interesting options to start 2023.
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