Is iShares FTSE China A50 ETF a great way to Invest in China?
πππChina has the world 's largest population with 1.4 billion people and is the world' s largest Manufacturing Hub. It is a dynamic country, a land of great opportunities. $ISHARES A50(02823)$ is my Top Pick to invest in this vibrant and dynamic country.
In just I trade, I gain instant exposure to China's Biggest and Strongest companies trading on the Shanghai and Shenzhen Stock exchanges. These companies include $Kweichow Moutai Co.,Ltd.(600519)$ $Contemporary Amperex Technology Co.,Ltd.(300750)$ China Yangtze Power, $Byd Company Limited(002594)$ $Wuliangye Yibin Co.,Ltd.(000858)$, China Merchants Bank, Ping An Insurance Group and many others.
If you are not familiar with Chinese companies, here is a small snapshot of 3 of these Chinese companies :
Kweichow Moutai is the world's most valuable liquor company since 2017 overtaking Johnnie Walker Brand by Diageo.
Contemporary Amperex or CATL is the world's biggest lithium-ion battery manufacturer for EVs.
BYD is China's largest EV manufacturer and battery producer.
Performance wise iShares FTSE China A50 was up 4% at the last closing. However it is down 12% in the past year. I believe this ETF is undervalued for what it can offer.
The expense ratio is 0.35%. Dividends are paid annually. The current dividend yield is 1.97%.
With more economic stimulus and boosts by the Chinese Authorities on the way, I believe that iShares FTSE China A50 ETF will take off to the moon.
I like that iShares FTSE China A50 ETF is well diversified and minimises my risk on investing in individual stocks. It is also very expensive to buy a stock like Kweichow Moutai too.
Best of all, iShares FTSE China A50 ETF gives me a solid foothold in investing in the future of China at a very low cost while collecting dividends along the way. How good is that!
Investing in a diversified portfolio is an important strategy for me and iShares FTSE China A50 ETF does it well. It will be remiss of me not to include China as it is the World's Superpower and Economic Powerhouse!
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The FTSE China A50 Index is a large and liquid index, which means that the ETF can be easily traded and that there is a lot of liquidity in the market.
The ETF tracks the FTSE China A50 Index, which is a market-capitalization-weighted index of 50 large-cap Chinese stocks that are listed on China.
FXI is denominated in U.S. dollars, which means that the value of the ETF can be affected by changes in the value of the Chinese yuan.
The iShares FTSE China A50 ETF (FXI) is a good way to invest in China's largest and most liquid stocks.