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The Zacks Analyst Blog Highlights CHIX, FCA, CHIR, FXI, and CHIS.
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For Immediate Release
Chicago, IL – July 8, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. ETF’s recently featured in the blog include: Global X MSCI China Financials ETF , First Trust China AlphaDEX Fund (FCA - Free Report) , Global X MSCI China Real Estate ETF , iShares China Large-Cap ETF (FXI - Free Report) and Global X MSCI China Consumer Staples ETF .
Here are highlights from Thursday’s Analyst Blog:
Is This the Time to Buy China ETFs?
China ETFs have long been crushed due to regulators' crackdown on various sectors, mainly the all-important technology space. The stringent COVID-related policies and lockdown as well as a crisis in the debt-laden real estate sector also weighed on the Chinese equities this year.
However, things have been changing for the better. China ETFs that were hit hard earlier in the year started to spring higher. Chinese tech equities started rebounding in late April as the nation's top political leaders planned to boost economic stimulus to promote growth. There could also be an easing of the continued clampdown on tech firms.
iShares MSCI Chinawas off about 13.5% in the first half of this year, beating the S&P 500. The fund added 7.6% past month. Hence, China ETFs may continue to register its winning momentum in Q3 (read: Top ETF Stories of Q2 That Should be Watched in Q3).
Investors should note that China is becoming a world leader in advanced Information Technology hardware production, focusing on 5G equipment and semiconductors. Since the launch of the Shanghai and Shenzhen Stock Connect programs in 2014 and 2016, Mainland investors now represent 8.5% of Hong Kong's free-float market capitalization. This number is projected to increase significantly in the coming years, per KraneShares research.
Citigroup added its asset allocation to China and Japan earlier this year, said Ken Peng of Citi Private Bank, published on CNBC. According to Peng, China is likely to see easing in both monetary and fiscal policy. As against the developed economies that are considering tightening of policies, China has slashed interest rates to boost its economy. This policy differential may steer investors toward China, which probably offers value now (read: What Lies Ahead for China ETFs in the Year of Tiger?).
Valuations are also cheap for many China ETFs. Many sport P/E ratios lower than the S&P 500 (21.70X). Below we highlight a few China ETFs that offer bargains at the current level.
ETFs in Focus
Global X MSCI China Financials ETF – Down 2.9% YTD; P/E: 5.66X
The underlying MSCI China Financials 10/50 Index follows a rules-based methodology that is designed to select constituents of the MSCI China Index that are classified in the financial sector under the Global Industry Classification System. The fund charges 65 bps in fees.
First Trust China AlphaDEX Fund – Down 4.9% YTD; P/E: 8.27X
The underlying NASDAQ AlphaDEX China Index employs the AlphaDEX stock selection methodology to select stocks from the NASDAQ China Index. The fund charges 80 bps in fees.
Global X MSCI China Real Estate ETF– Down 5.4% YTD; P/E: 5.28X
The underlying MSCI China Real Estate 10/50 Index tracks the performance of companies in the real estate sector in the MSCI China Index. The fund charges 66 bps in fees.
iShares China Large-Cap ETF – Down 6.8% YTD; P/E: 14.19X
The underlying FTSE China 50 Index tracks the performance of the largest companies in the Chinese equity market that are available to international investors. The fund charges 74 bps in fees.
Global X MSCI China Consumer Staples ETF– Down 7.5% YTD; P/E: 20.89X
The underlying MSCI China Consumer Staples 10/50 Index tracks the performance of companies in the consumer staples sector in the MSCI China Index. The fund charges 65 bps in fees.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights CHIX, FCA, CHIR, FXI, and CHIS.
For Immediate Release
Chicago, IL – July 8, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. ETF’s recently featured in the blog include: Global X MSCI China Financials ETF , First Trust China AlphaDEX Fund (FCA - Free Report) , Global X MSCI China Real Estate ETF , iShares China Large-Cap ETF (FXI - Free Report) and Global X MSCI China Consumer Staples ETF .
Here are highlights from Thursday’s Analyst Blog:
Is This the Time to Buy China ETFs?
China ETFs have long been crushed due to regulators' crackdown on various sectors, mainly the all-important technology space. The stringent COVID-related policies and lockdown as well as a crisis in the debt-laden real estate sector also weighed on the Chinese equities this year.
However, things have been changing for the better. China ETFs that were hit hard earlier in the year started to spring higher. Chinese tech equities started rebounding in late April as the nation's top political leaders planned to boost economic stimulus to promote growth. There could also be an easing of the continued clampdown on tech firms.
If these were not enough, United States and Chinese officials discussed economic sanctions and tariffs amid reports that president Biden may withdraw some of the trade levies imposed by former President Donald Trump. China is also planning to start a $75 billion infrastructure fund as a means to prop up its economy.
iShares MSCI Chinawas off about 13.5% in the first half of this year, beating the S&P 500. The fund added 7.6% past month. Hence, China ETFs may continue to register its winning momentum in Q3 (read: Top ETF Stories of Q2 That Should be Watched in Q3).
Investors should note that China is becoming a world leader in advanced Information Technology hardware production, focusing on 5G equipment and semiconductors. Since the launch of the Shanghai and Shenzhen Stock Connect programs in 2014 and 2016, Mainland investors now represent 8.5% of Hong Kong's free-float market capitalization. This number is projected to increase significantly in the coming years, per KraneShares research.
Citigroup added its asset allocation to China and Japan earlier this year, said Ken Peng of Citi Private Bank, published on CNBC. According to Peng, China is likely to see easing in both monetary and fiscal policy. As against the developed economies that are considering tightening of policies, China has slashed interest rates to boost its economy. This policy differential may steer investors toward China, which probably offers value now (read: What Lies Ahead for China ETFs in the Year of Tiger?).
Valuations are also cheap for many China ETFs. Many sport P/E ratios lower than the S&P 500 (21.70X). Below we highlight a few China ETFs that offer bargains at the current level.
ETFs in Focus
Global X MSCI China Financials ETF – Down 2.9% YTD; P/E: 5.66X
The underlying MSCI China Financials 10/50 Index follows a rules-based methodology that is designed to select constituents of the MSCI China Index that are classified in the financial sector under the Global Industry Classification System. The fund charges 65 bps in fees.
First Trust China AlphaDEX Fund – Down 4.9% YTD; P/E: 8.27X
The underlying NASDAQ AlphaDEX China Index employs the AlphaDEX stock selection methodology to select stocks from the NASDAQ China Index. The fund charges 80 bps in fees.
Global X MSCI China Real Estate ETF– Down 5.4% YTD; P/E: 5.28X
The underlying MSCI China Real Estate 10/50 Index tracks the performance of companies in the real estate sector in the MSCI China Index. The fund charges 66 bps in fees.
iShares China Large-Cap ETF – Down 6.8% YTD; P/E: 14.19X
The underlying FTSE China 50 Index tracks the performance of the largest companies in the Chinese equity market that are available to international investors. The fund charges 74 bps in fees.
Global X MSCI China Consumer Staples ETF– Down 7.5% YTD; P/E: 20.89X
The underlying MSCI China Consumer Staples 10/50 Index tracks the performance of companies in the consumer staples sector in the MSCI China Index. The fund charges 65 bps in fees.
Want key ETF info delivered straight to your inbox?
Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.