Faster than expected growth in China
services industry data
led to a rally of more than three percent in the Hang Seng China
Enterprises Index on Tuesday. This jump marks a new
year-to-date high for Chinese equities and underscores strong
fundamentals in this massive Asian economy.
Some ETFs focused on
are seeing strong rallies too.
iShares China Large Cap ETF (NYSE:
The services industry news sent FXI more than three percent
higher. This widely followed index of 25 Chinese stocks recently
announced it would be broadening its scope to include 50 total
holdings, beginning on September 19.
Emerging Market ETFs Lead Q3 Fund Flows
So far this year, FXI has gained just over 11 percent and
appears to have established a new uptrend fueled by money flowing
back into emerging market stocks. While that gain is significant,
several other key China ETFs have posted even stronger returns
Deutsche X-trackers Harvest CSI 500 China A-Shares Small Cap
The newly released ASHS has jumped over 25 percent in just the
few short months since its May debut.
This ETF tracks 500 small company A-share holdings in mainland
China, which have historically been difficult to access for
foreign investors. However, the significant relative
strength makes this an ETF to watch closely as a complement to
Deutsche X-trackers Harvest MSCI All China Equity ETF (NYSE:
Another excellent performer this year has been CN which hails
from the same fund family as ASHS. This ETF is designed to
access a wide array of varying share classes in China that
include: A-shares, H-shares, B-shares, Red chips, and P chips
along with China securities that are listed in the United States.
Since its April debut, CN has risen more than 19 percent.
KraneShares CSI China Internet ETF (NASDAQ:
Lastly, KWEB is a more established fund that is exclusively
dedicated to tracking internet-related search, retail, and social
media companies in China. This sector-specific offering has
gained more than 19 percent on the growth of these fast paced
In addition, KWEB has announced that it will be adding
Alibaba, one of the largest internet companies in the world, to
its portfolio 11 days after its initial public offering.
That move will further solidify this ETF as a top contender of
China's internet consumers.
All of these ETFs offer a unique way to invest in a fast-paced
Asian economy with tremendous growth potential in the years
© 2014 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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