Hot China Assets! US-Listed China Stock ETFs as a Better Choice

If you believe the Chinese government's and central bank’s interventions will drive long-term growth in China’s market, here are seven high-quality U.S.-listed China stock ETFs worth considering:

1. $Invesco Golden Dragon China ETF(PGJ)$

PGJ tracks the Nasdaq Golden Dragon China Index, which includes about 260 Chinese companies trading in the U.S. across tech, consumer goods, healthcare, and financials. The fund has taken a hit in recent years.

2. $Franklin FTSE China ETF(FLCH)$

FLCH follows the FTSE China Capped Index, investing in large- and mid-cap Chinese stocks with strict position limits. It currently holds 950 stocks and has a trailing 12-month yield (TTM yield) of 2.4%.

3. $VanEck ChiNext ETF(CNXT)$

A smaller ETF with significant long-term growth potential, CNXT carries higher risks and lower liquidity, but the return potential is huge. It tracks the ChiNext Index, which can be compared to the Nasdaq, focusing on high-growth Chinese stocks listed on the Shenzhen exchange, especially in tech and healthcare.

4. $Invesco China Technology ETF(CQQQ)$

CQQQ focuses on the Chinese tech sector by tracking the FTSE China Incl A 25% Technology Capped Index. It invests heavily in digital payments, cloud computing, and e-commerce. The fund has a TTM yield of 0.5%.

5. $WisdomTree China ex-State-Owned Enterprises Fund(CXSE)$

CXSE tracks the WisdomTree China ex-State-Owned Enterprise Index, intentionally avoiding companies with over 20% government ownership or control. The ETF is market cap-weighted and float-adjusted, giving larger, more liquid stocks a higher share. Its TTM yield is 1.6%.

6. $iShares China Large-Cap ETF(FXI)$

FXI tracks the FTSE China A50 Index and is a blue-chip fund that invests in the 50 largest Chinese companies listed in Hong Kong, primarily in telecom, energy, and consumer goods. While it invests in companies controlled by the Chinese government, some are overseas firms generating significant revenue in China. Its TTM yield is 2.2%.

7. $Direxion Daily CSI China Internet Index Bull 2x Shares(CWEB)$

CWEB is an innovative leveraged ETF (2x long) that aims to deliver about twice the returns of the CSI Overseas China Internet Index. This actively managed ETF is high risk and high volatility, making it unsuitable for long-term holding. It has a TTM yield of 1.5%.

These U.S.-listed China ETFs offer a range of diversified investment options in different sectors, making them appealing to those looking to tap into China’s economic potential. However, each comes with different risk and return profiles, so investors should make informed decisions based on their own risk tolerance.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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