One of the easiest ways to invest in the Chinese stock market is to invest in a broad market index. The most cost-effective way to do so is to invest in ETFs that focus on China. Such ETFs track publicly listed Chinese companies and give investors exposure to the Chinese market without directly investing in those stocks.
Moreover, it allows investors to geographically diversify their portfolios by investing in companies that are based in China. Although investing in China ETFs is not without risks, including trade tensions with the U.S., many investors are still making long-term bets on the world’s second-largest economy. Let’s take a look at the 10 best-performing China region ETFs.
10 best-performing China region ETFs
We have used the last one-year return data (from U.S. News) to rank the 10 best-performing China region ETFs. Here are the 10 best-performing China region ETFs:
10. Xtrackers Harvest CSI 500 CHN A SmCp ETF (ASHS, -1%)
Xtrackers Hvst CSI500 China A-Shs SC ETF (NYSEARCA:ASHS) aims to offer investment results that are in line with the performance of the CSI 500 Index. The underlying index is made up of the 500 smallest and most liquid stocks in the China A-Share market.
This ETF invests at least 80% of its net assets in A-Shares of Chinese small-cap issuers, derivative instruments, or investments offering exposure to A-Shares of Chinese small-cap issuers.
ASHS is up by over 10% year-to-date and has a NAV of $33.45. It has total assets of more than $28 million and an expense ratio of 0.65. The ETF has a Bid and Ask price of $33.33 and $33.41, respectively. This ETF has primarily invested in Basic Materials, Industrials, Technology, Healthcare, and Financial Services sectors.
ASHS has an inception date of May 21, 2014.
9. Franklin FTSE Hong Kong ETF (FLHK, -1%)
Franklin FTSE Hong Kong ETF (NYSEARCA:FLHK) aims to offer investment results that closely resemble the performance of the FTSE Hong Kong RIC Capped Index. This ETF normally invests a minimum of 80% of its assets in the securities that are part of the FTSE Hong Kong Capped Index, as well as in depositary receipts that represent such securities.
FLHK is up by almost 1% year-to-date and has a NAV of $21.66. It has total assets of more than $17 million and an expense ratio of 0.09. The ETF has a Bid and Ask price of $21.48 and $21.68, respectively. This ETF has primarily invested in Financial Services, Real Estate, Industrials, Utilities and Consumer Cyclical sectors.
FLHK has an inception date of Nov. 2, 2017.
8. Global X MSCI China Consumer Disc ETF (CHIQ, 0%)
Global X MSCI China Consumer Discretionary ETF (NYSEARCA:CHIQ) aims to offer investment results that correspond to the price and yield performance of the MSCI China Consumer Discretionary 10/50 Index.
This ETF mainly invests a minimum of 80% of its total assets in the securities of the underlying index, as well as in ADRs and GDRs based on the securities in the underlying index.
CHIQ is down by over 5% year-to-date and has a NAV of $19.18. It has total assets of more than $333 million and an expense ratio of 0.65. The ETF has a Bid and Ask price of $18.79 and $18.82, respectively. PDD Holdings Inc (ADR PDD), Yum China Holdings Inc (YUMC) and Trip.com Group Ltd (ADR TCOM) are the top holdings of this ETF.
CHIQ has an inception date of Nov. 30, 2009.
7. Invesco China Technology ETF (CQQQ, 1%)
Invesco China Technology ETF (NYSEARCA:CQQQ) aims to offer investment results that correspond to the performance of the FTSE China Incl A 25% Technology Capped Index.
Normally, this ETF invests a minimum of 90% of its total assets in securities that are part of the underlying index, and in ADRs and GDRs that represent securities in the underlying index.
CQQQ is up by almost 4% year-to-date and has a NAV of $45.19. It has total assets of more than $942 million and an expense ratio of 0.70. The ETF has a Bid and Ask price of $44.44 and $44.67, respectively. PDD Holdings Inc (ADR PDD) and Tencent Music Entertainment Group (ADR TME) are the top holdings of this ETF.
CQQQ has an inception date of Dec. 8, 2009.
6. Global X MSCI China Health Care ETF (CHIH, 2%)
Global X MSCI China Health Care ETF (NYSEARCA:CHIH) aims to provide investment results that are in line with the price and yield performance of the MSCI China Health Care 10/50 Index.
This ETF, under normal circumstances, invests a minimum of 80% of its net assets in the securities that are part of the underlying index, and in ADRs and GDRs that are based on the securities in the underlying index.
CHIH is up by almost 1% year-to-date and has a NAV of $16.88. It has total assets of more than $10.1 million and an expense ratio of 0.65. The ETF has a Bid and Ask price of $16.50 and $16.71, respectively. Zai Lab Limited (ADR ZLAB) is the top holding of this ETF.
CHIH has an inception date of Dec. 7, 2018.
5. KraneShares SSE STAR Market 50 ETF (KSTR, 2%)
KraneShares SSE STAR Market 50 Index ETF (NYSEARCA:KSTR) aims to provide investment results that are in line with the price and yield performance of the SSE Science and Technology Innovation Board 50 Index.
This ETF, under normal circumstances, invests a minimum of 80% of its net assets in securities that are part of the underlying index, or in securities exhibiting similar economic characteristics to those in the underlying index.
KSTR is up by almost 15% year-to-date and has a NAV of $17.33. It has total assets of more than $49 million and an expense ratio of 0.88. The ETF has a Bid and Ask price of $17.40 and $17.44, respectively. This ETF has primarily invested in Industrials, Healthcare, Basic Materials and Consumer Cyclical sectors.
KSTR has an inception date of Jan. 26, 2021.
4. KraneShares CSI China Internet ETF (KWEB, 3%)
KraneShares CSI China Internet ETF (NYSEARCA:KWEB) aims to provide investment results that are in line with the price and yield performance of the CSI Overseas China Internet Index.
This ETF mainly invests a minimum of 80% of its net assets in securities that are part of the underlying index, or in securities exhibiting similar economic characteristics to those in the underlying index.
KWEB is down by almost 4% year-to-date and has a NAV of $29.18. It has total assets of more than $5.65 billion and an expense ratio of 0.68. The ETF has a Bid and Ask price of $28.62 and $28.63, respectively. DD Holdings Inc (ADR PDD), KE Holdings Inc (ADR BEKE), and Tencent Music Entertainment Group (ADR TME) are the top holdings of this ETF.
KWEB has an inception date of July 31, 2013.
3. KraneShares CICC China 5G & Semiconductor ETF (KFVG, 5%)
KraneShares CICC China 5G & Semiconductor Idx ETF (NYSEARCA:KFVG) aims to offer investment results that are in line with the price and yield performance of the CICC China 5G and Semiconductor Leaders Index.
This ETF normally invests a minimum of 80% of its net assets in the securities that are part of the underlying index, or in securities exhibiting similar economic characteristics to those in the underlying index.
KFVG is up by over 21% year-to-date and has a NAV of $18.78. It has total assets of more than $15.9 million and an expense ratio of 0.78. The ETF has a Bid and Ask price of $18.74 and $18.80, respectively. KFVG has invested mostly in tech companies.
KFVG has an inception date of Nov. 11, 2020.
2. Global X MSCI China Comm Services ETF (CHIC, 10%)
Global X MSCI China Communication Services ETF (NYSEARCA:CHIC) aims to offer investment results that correspond to the price and yield performance of the MSCI China Communication Services 10/50 Index.
Normally, this ETF invests a minimum of 80% of its total assets in the securities of the underlying index, as well as in the ADRs and GDRs that are based on the securities in the underlying index. The underlying index tracks the performance of the communication services companies in the MSCI China Index.
CHIC is up by almost 18% year-to-date, and has a NAV of $17.11. It has total assets of more than $8.2 million and an expense ratio of 0.65. The ETF has a Bid and Ask price of $16.81 and $16.89, respectively. iQIYI Inc (ADR IQ) is the top holding of CHIE.
CHIC has an inception date of Dec. 8, 2009.
1. Global X MSCI China Energy ETF (CHIE, 11%)
Global X MSCI China Energy ETF (NYSEARCA:CHIE) aims to match the price and yield performance of the MSCI China Energy IMI Plus 10/50 Index. It primarily invests a minimum of 80% of its total assets in the securities of the underlying index, as well as in ADRs and GDRs that are based on the securities in the underlying index.
The underlying index, in turn, tracks the performance of the energy companies in the MSCI China Investable Market Index.
CHIE is up by almost 8% year-to-date and has a NAV of $15.33. It has total assets of more than $9.9 million and an expense ratio of 0.65. The ETF has a Bid and Ask price of $15.21 and $15.32, respectively.
CHIE has an inception date of Dec. 15, 2009.
This article originally appeared on ValueWalk
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