ETF Trends publisher/editor Tom Lydon appeared on Yahoo Finance’s ‘The Final Round’ on Tuesday to discuss why investors need to look to China.
As overseas markets are beginning to outpace U.S. markets, Lydon said a lot of investors have been ignoring international markets.
Since MSCI is set to include China A-shares in its benchmark Emerging Markets indices, he added China A-shares are a relevant market because Beijing has strictly controlled its markets and the way foreign investors can access it.
Traditionally, U.S. investors can gain exposure to China through Hong-Kong or NYSE-listed Chinese company stocks. More recently, China has opened its domestic A-shares market to foreign investors.
Now, U.S. investors have the opportunity to directly invest in Chinese names.
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Specifically, Lydon pointed to Deutsche X-trackers Harvest CSI 300 China A-shares ETF (ASHR) as an option for investors looking to invest in China now ahead of MSCI adding China A Shares to its Emerging-Markets Index.
“There are some ETF issuers that have done a great job and got ahead of the curve – VanEck is one, the largest is the Deutsche X-trackers Harvest CSI 300 China A-shares ETF (ASHR),” he said.
Click the video above to watch the full segment.