Best China ETFs (2024)

FAQs

Best China ETFs? ›

Tencent Holdings Ltd, China Construction Bank Corporation, Industrial and Commercial Bank and China Mobile Ltd are the top three stock holdings.

Tencent Holdings Ltd, China Construction Bank Corporation, Industrial and Commercial Bank and China Mobile Ltd are the top three stock holdings.

Bloomberg Ticker : SPC500CP

The S&P China 500 comprises 500 of the largest, most liquid Chinese companies while approximating the sector composition of the broader Chinese equity market.

China Large-Cap ETF iShares (FXI)

The Fund may also invest in issuers listed in China and may invest in A-Shares, which are common stocks and other equity securities that are listed or traded on a Chinese stock exchange and which are quoted in renminbi.

Two of the most popular ETFs include index funds based on the Standard & Poor's 500 index and the Nasdaq 100 index, which contain high-quality businesses listed on American exchanges: Vanguard S&P 500 ETF (VOO), with an expense ratio of 0.03 percent. Invesco QQQ Trust (QQQ), with an expense ratio of 0.20 percent.

The Shanghai Stock Exchange (SSE) Composite Index, often called the SSI Index, tracks all stocks traded on the Shanghai Stock Exchange.

There are 125 ETFs which contain ALIBABA GROUP HOLDING LTD ORD. All of these ETFs are listed in the table below. The ETF with the largest weighting of ALIBABA GROUP HOLDING LTD ORD is the Lyxor MSCI China ESG Leaders Extra (DR) UCITS ETF USD.

Why is Baba not in S&P 500? ›

Is BABA in the S&P 500 Index? No. Despite being a large and important global e-commerce company, Alibaba shares cannot be included in the S&P 500 index because the S&P only includes companies that are based in the United States.

The largest China ETF is the iShares MSCI China ETF MCHI with $8.16B in assets.

The iShares MSCI Hong Kong ETF was the earliest available fund for investors to use.

The ETF with the largest weighting of TENCENT HLDGS. LTD is the Lyxor MSCI China ESG Leaders Extra (DR) UCITS ETF - Acc.

BlackRock and Vanguard are among the largest shareholders in Evergrande that have posted hundreds of millions of dollars in paper losses following a more than 80% share price drop in the troubled Chinese property developer.

BlackRock, the first foreign asset manager to operate a wholly owned business in China's $3.6 trillion mutual fund industry, said its newly launched China equity fund had raised 6.68 billion yuan ($1.03bn) from more than 111,000 investors.

1. Vanguard S&P 500 ETF (VOO -0.04%) Legendary investor Warren Buffett has said that the best investment the average American can make is a low-cost S&P 500 index fund like the Vanguard S&P 500 ETF.

What is the most aggressive ETF? ›

The S&P China 500 is diversified with both onshore and offshore listings and thus outperformed indices with higher weights in Hong Kong-listed Chinese companies.

How Can I Buy Shanghai Stock? To purchase shares on the Shanghai Stock Exchange, you can purchase American depository receipts (ADRs), invest in mutual funds or exchange traded funds (ETFs) that have exposure to the exchange, as well as invest with market makers that can access the exchange.

There are 245 ETFs which contain NETFLIX INC. All of these ETFs are listed in the table below. The ETF with the largest weighting of NETFLIX INC is the iShares Digital Entertainment and Education UCITS ETF USD (Acc).

Buying stocks directly in a foreign market like India or China is possible, although it might be harder than purchasing domestic shares. Investors can purchase American Depositary Receipts on U.S. exchanges, which are certificates that represent shares in a foreign company. China A-shares are open to foreign investors.

Some of the risks associated with investing in China include its communist structure, regulatory differences, and insider trading. Investment opportunities in China include U.S. corporations that have a presence in the country, mutual funds, and ETFs.

Invest in China as consumer spending rebounds

Asset managers believe that one of the reasons to invest in China now is because the country has witnessed a steady revival in consumer spending in 2023 so far.

Is NIO a buy? ›

NIO Inc. currently has an average brokerage recommendation (ABR) of 1.94, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by nine brokerage firms. An ABR of 1.94 approximates between Strong Buy and Buy.

Stock Market ETF Strategy And How To Invest

According to Zacks, Alibaba is expected to earn $7.85 a share in its current fiscal year 2023, down 5.5% compared to fiscal 2022. But growth is expected to pick up in 2024, up 4% to $8.20. Click here to the top-rated stocks in the group.

Tesla CEO Elon Musk tweeted that S&P Global Ratings "has lost their integrity" and described environmental, social, and governance investing as a "scam." Tesla no longer qualifies for inclusion in the S&P 500 ESG Index.

The JPMorgan Active China ETF (JCHI) is actively managed and can invest in a wide range of securities that are economically tied to China, according to its prospectus. The fund has an expense ratio of 0.65% and lists on the NYSE Arca.

The largest Hong Kong ETF is the iShares MSCI Hong Kong ETF EWH with $775.68M in assets. In the last trailing year, the best-performing Hong Kong ETF was FLHK at 3.24%.

Shanghai Stock Exchange STAR Market.

Chinese stocks in the US erased all their gains for the year as the rally driven by China's fast reopening hit a wall of sluggish earnings and a lack of policy incentives, while fresh turmoil at Credit Suisse Group AG spurred a selloff in risk assets.

Under regulatory pressure aimed at preventing systemic risks, Yu'e Bao — while still China's biggest money market fund with roughly 775 billion yuan in assets — now accounts for only 7.3% of the country's money market fund assets, down from more than 30% of total assets in 2014.

One of the most widely traded Chinese Yuan ETFs is the WisdomTree Dreyfus Chinese Yuan Fund. The fund aims to mirror the performance of Chinese interest rates and the value of the yuan relative to the U.S. dollar.

What is the longest running ETF? ›

SPDR S&P 500 ETF (SPY)

The State Street SPDR S&P 500 ETF is not only the oldest U.S. listed exchange-traded fund, but it also typically has both the largest assets under management (AUM) and highest trading volume of all ETFs.

The iShares Core Hang Seng Index ETF seeks to track the investment results of an index composed of Hong Kong equities.

1. Vanguard Total International Stock ETF (VXUS) The Vanguard Total International Stock ETF is the largest major global ex-U.S. fund with $49 billion in AUM as of Q2 2022.

JPMorgan offers the two largest actively managed ETFs, while Dimensional Fund Advisors has three funds in the top ranks, two of which converted from mutual fund structures. In terms of leading brands, Vanguard and State Street Global Advisors are rather glaring absences.

The China Fund seeks to maximise total return. The Fund invests at least 70% of its total assets in the equity securities of companies domiciled in, or exercising the predominant part of their economic activity in, the People's Republic of China.

Originally built for domestic Chinese investors, the CSI 300 consists of the 300 largest China A-Shares stocks ranked by market cap while the MSCI China A index currently tracks 443 securities.

The Hang Seng Index (HSI) is the benchmark stock market index for the Hong Kong financial world and is widely followed as a proxy for the Asian markets in general. It is a weighted index of the largest companies that trade on the Hong Kong Exchange, covering approximately 65% of its total market capitalization.

Is MSCI China a good investment? ›

As can be seen, the MSCI China has had the poorest returns over the period. The index is still actually below its starting level and even with dividends reinvested has only returned 1.9% p.a. over 30 years.

In justifying its decision, New York's Morgan Stanley Capital International (MSCI) stated that China's capital market is still not sufficiently accessible for international investors: there remain too many restrictions, such as foreign access to A shares still being limited to narrow channels like the Qualified Foreign ...

The MSCI China Index and the MSCI China All Shares Index are the most common. The major difference between the two is the extent of inclusion of A-shares in the investment universe. While the MSCI China Index has a cap on A-shares inclusion, the MSCI China All Shares does not.

A number of experts say they expect the year of the rabbit to be one of recovery and an accelerated activity as the zero-covid policy is rolled back - and this indeed good be an excellent time to get into China.

Invest in China as consumer spending rebounds

Asset managers believe that one of the reasons to invest in China now is because the country has witnessed a steady revival in consumer spending in 2023 so far.

JD.com. JD.com is a direct-sales retailer that uses a model similar to Amazon. In contrast to Alibaba's ecommerce model, JD.com warehouses, markets, and ships merchandise directly to Chinese consumers through its national shipping network, which includes a last-mile delivery component throughout much of the nation.