My Best Performing Chinese ETFs - FXI and KWEB ETFs
πππA jumbo series of stimulus package by the Chinese authorities sent Chinese stocks up over the last 2 weeks but since this week, those gains seem to have evaporated. What a roller coaster ride!
Nonetheless my current 2 best performing ETFs - FXI and KWEB are still up double digits.
$iShares China Large-Cap ETF(FXI)$
The Top 10 holdings include $MEITUAN-W(03690)$
The expense ratio is 0.74%. Dividends are paid every 6 months. The current dividend is 2.18%.
FXI is up a modest 1.3% on Thursday trading but it has dropped 6% in the past 5 days. However FXI has risen 42% year todate and in 2023, FXI is up 23%. FXI represents tremendous value for money as the Top 50 Chinese stocks are all nicely bundled into 1 powerful ETF.
I have invested in FXI since January this year and it only recently took off after the blitz of stimulus announced 2 weeks ago.
I am currently up 25% on FXI and even though it may go up and down like a yoyo, I believe that it is undervalued for what it offers.
Another winning Chinese ETF that I bought in August was $KraneShares CSI China Internet ETF(KWEB)$
KWEB represents 33 of the largest Chinese Internet companies. While it may be similar to FXI, KWEB has a laser focus on Chinese Big Tech.
The Top 10 holdings include Alibaba, Tencent Holdings, Meituan, JD. com, PDD Holdings, KE Holdings, Trip.com, Full Truck Alliance, Baidu, Vishop Holdings and Kuaishou Technology.
The expense ratio is 0.70%. Dividends are paid annually. The current dividend yield is 1.33%.
Performance wise KWEB is just up 0.23% on Thursday but down 9.4% in the past 5 days. However KWEB has risen 33% year todate and in 2023, KWEB is up 21%.
I am currently up 23% in KWEB which is really nice but I expect much volatility in KWEB too.
Volatility is the price I am willing to pay for outsized gains in these 2 Chinese ETFs KWEB and FXI in the future. It takes much courage to remain calm when KWEB and FXI share prices are super volatile. Fundamentally all the holdings in both KWEB and FXI are strong profitable Chinese companies that I would be proud to own individually. But as a small retail investor with limited funds, KWEB and FXI offer tremendous value for my money with huge upside potential for the long term horizon.
China is the world's second largest economy with a huge population of 1.4 billion. My portfolio is not quite complete without investing in FXI and KWEB as they represent the best Chinese stocks in 2 powerful ETFs.
@Daily_Discussion @TigerStars @Tiger_comments @MillionaireTiger @CaptainTiger
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.
Mark