We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Analyst Blog Highlights CHB, PGJ, CXSE, KEJI and MCH
Read MoreHide Full Article
For Immediate Release
Chicago, IL – January 23, 2023 – 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. Stocks recently featured in the blog include: Global X China Biotech Innovation ETF , Invesco Golden Dragon China ETF (PGJ - Free Report) , WisdomTree China ex-State-Owned Enterprises Fund (CXSE - Free Report) , Global X China Innovation ETF and Matthews China Active ETF (MCH - Free Report) .
Here are highlights from Friday’s Analyst Blog:
5 ETFs Riding Higher on a China Stock Rally
After a $3.9 trillion rout, Chinese stocks have staged a strong comeback this year. The MSCI China Index, which tracks more than $2 trillion of Chinese stocks listed home and abroad, has risen 12.4% in the initial weeks of 2023, marking the best start to a year since 1996.
The rally has been driven by a rebound in investor sentiment after China reopened following three years of a strict zero-COVID policy and Beijing's pledge for additional policy support to boost the ailing domestic economy.
Given this, investors should tap the strength in China's economy with the best-performing ETFs in the initial weeks of 2023.
The easing of restrictions will help spur a recovery in the Chinese economy, which was driven close to contraction territory by continued COVID-linked disruptions. The latest shift in China's COVID regulations also increased optimism for investors betting on further reopening in the wider region, stretching to Macao's casino sector (read: China ETF Outperformers of Last Week).
In fact, China's tech stocks have staged a $700 billion rally as the country reopens and a regulatory clampdown on the sector loosens, drawing the attention of international asset managers who fled the market in recent years. Foreign investors flocked to Chinese stocks and bought net 64 billion yuan ($9.5 billion) of stocks via the trading link between the mainland and Hong Kong in the first nine trading days of the New Year.
According to the Bank of America survey, investors are bullish on Chinese stocks. About 84% of survey respondents are "net long and overweight" on China, with 78% expecting a further 10-20% upside in China markets for the rest of this year.
Further, Chinese companies are expected to report their highest earnings growth in five years, per the data from Refinitiv, as economic reopening after COVID lockdowns and accommodative monetary policy bolstered hopes for higher profits. China's large and mid-cap companies' profits are expected to rise 16.2% in 2023, the fastest growth since 2017.
ETFs to Tap
Global X China Biotech Innovation ETF - Up 15.8%
Global X China Biotech Innovation ETF seeks to invest in companies that are directly involved in China's biotechnology industry by tracking the Solactive China Biotech Innovation Index. It holds 26 stocks in its basket with a double-digit concentration on the top firm.
Global X China Biotech Innovation ETF has gathered $2.9 million in its asset base and charges 65 bps in annual fees. It trades in an average daily volume of 1,000 shares.
Invesco Golden Dragon China ETF – Up 14.7%
Invesco Golden Dragon China ETF follows the NASDAQ Golden Dragon China Index, which offers exposure to the U.S. exchange-listed companies that are headquartered or incorporated in the People's Republic of China. It holds a basket of 65 stocks with a higher concentration on the top firms. Consumer discretionary and communication services sectors take the largest share at 53.2% and 25.2%, respectively (read: Bet on China ETFs on a Solid Turnaround).
Invesco Golden Dragon China ETF has AUM of $256 million and charges 70 bps in annual fees. It trades in an average daily volume of 159,000 shares and has a Zacks ETF Rank #5 (Strong Sell).
WisdomTree China ex-State-Owned Enterprises Fund – Up 13.7%
WisdomTree China ex-State-Owned Enterprises Fund offers exposure to Chinese stocks that are not state-owned enterprises, which is defined as government ownership of greater than 20%. It tracks the WisdomTree China ex-State-Owned Enterprises Index, charging 32 bps in annual fees. WisdomTree China ex-State-Owned Enterprises Fund holds 203 securities in its basket with key holdings in consumer discretionary, healthcare and information technology.
WisdomTree China ex-State-Owned Enterprises Fund has been able to manage $892.3 million in its asset base and trades in volume of 132,000 shares a day on average. It has a Zacks ETF Rank #5 with a Medium risk outlook.
Global X China Innovation ETF – Up 13.4%
Global X China Innovation ETF is an actively managed fund that seeks to invest in companies that are economically tied to disruptive innovation in China. Disruptive themes targeted by KEJI may include advancements in technology, changing demographics and consumer preferences, and adaptations to the physical environment. The fund holds 45 securities in its baket with key holdings in consumer discretionary, industrials, information technology and healthcare.
Global X China Innovation ETF has accumulated $2.4 million in its asset base and trades in an average daily volume of around 500 shares. It charges 75 bps in annual fees (read: Top-Performing Broad Foreign ETFs of 2022).
Matthews China Active ETF – Up 13.3%
Matthews China Active ETF is an actively managed fund that seeks to invest in companies capable of sustainable growth based on the fundamental characteristics, including balance sheet information; the number of employees; size and stability of cash flow; management's depth, adaptability and integrity; product lines; marketing strategies; corporate governance; and financial health. MCH holds 63 stocks in its basket with a tilt toward consumer discretionary with a 34.7% share. Financials and information technology also receive a double-digit allocation each.
Matthews China Active ETF has amassed $29.2 million in its asset base while trades in a volume of 18,000 shares a day on average. It charges 79 bps in fees per year from investors.
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.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
The Zacks Analyst Blog Highlights CHB, PGJ, CXSE, KEJI and MCH
For Immediate Release
Chicago, IL – January 23, 2023 – 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. Stocks recently featured in the blog include: Global X China Biotech Innovation ETF , Invesco Golden Dragon China ETF (PGJ - Free Report) , WisdomTree China ex-State-Owned Enterprises Fund (CXSE - Free Report) , Global X China Innovation ETF and Matthews China Active ETF (MCH - Free Report) .
Here are highlights from Friday’s Analyst Blog:
5 ETFs Riding Higher on a China Stock Rally
After a $3.9 trillion rout, Chinese stocks have staged a strong comeback this year. The MSCI China Index, which tracks more than $2 trillion of Chinese stocks listed home and abroad, has risen 12.4% in the initial weeks of 2023, marking the best start to a year since 1996.
The rally has been driven by a rebound in investor sentiment after China reopened following three years of a strict zero-COVID policy and Beijing's pledge for additional policy support to boost the ailing domestic economy.
Given this, investors should tap the strength in China's economy with the best-performing ETFs in the initial weeks of 2023.
The easing of restrictions will help spur a recovery in the Chinese economy, which was driven close to contraction territory by continued COVID-linked disruptions. The latest shift in China's COVID regulations also increased optimism for investors betting on further reopening in the wider region, stretching to Macao's casino sector (read: China ETF Outperformers of Last Week).
In fact, China's tech stocks have staged a $700 billion rally as the country reopens and a regulatory clampdown on the sector loosens, drawing the attention of international asset managers who fled the market in recent years. Foreign investors flocked to Chinese stocks and bought net 64 billion yuan ($9.5 billion) of stocks via the trading link between the mainland and Hong Kong in the first nine trading days of the New Year.
According to the Bank of America survey, investors are bullish on Chinese stocks. About 84% of survey respondents are "net long and overweight" on China, with 78% expecting a further 10-20% upside in China markets for the rest of this year.
Further, Chinese companies are expected to report their highest earnings growth in five years, per the data from Refinitiv, as economic reopening after COVID lockdowns and accommodative monetary policy bolstered hopes for higher profits. China's large and mid-cap companies' profits are expected to rise 16.2% in 2023, the fastest growth since 2017.
ETFs to Tap
Global X China Biotech Innovation ETF - Up 15.8%
Global X China Biotech Innovation ETF seeks to invest in companies that are directly involved in China's biotechnology industry by tracking the Solactive China Biotech Innovation Index. It holds 26 stocks in its basket with a double-digit concentration on the top firm.
Global X China Biotech Innovation ETF has gathered $2.9 million in its asset base and charges 65 bps in annual fees. It trades in an average daily volume of 1,000 shares.
Invesco Golden Dragon China ETF – Up 14.7%
Invesco Golden Dragon China ETF follows the NASDAQ Golden Dragon China Index, which offers exposure to the U.S. exchange-listed companies that are headquartered or incorporated in the People's Republic of China. It holds a basket of 65 stocks with a higher concentration on the top firms. Consumer discretionary and communication services sectors take the largest share at 53.2% and 25.2%, respectively (read: Bet on China ETFs on a Solid Turnaround).
Invesco Golden Dragon China ETF has AUM of $256 million and charges 70 bps in annual fees. It trades in an average daily volume of 159,000 shares and has a Zacks ETF Rank #5 (Strong Sell).
WisdomTree China ex-State-Owned Enterprises Fund – Up 13.7%
WisdomTree China ex-State-Owned Enterprises Fund offers exposure to Chinese stocks that are not state-owned enterprises, which is defined as government ownership of greater than 20%. It tracks the WisdomTree China ex-State-Owned Enterprises Index, charging 32 bps in annual fees. WisdomTree China ex-State-Owned Enterprises Fund holds 203 securities in its basket with key holdings in consumer discretionary, healthcare and information technology.
WisdomTree China ex-State-Owned Enterprises Fund has been able to manage $892.3 million in its asset base and trades in volume of 132,000 shares a day on average. It has a Zacks ETF Rank #5 with a Medium risk outlook.
Global X China Innovation ETF – Up 13.4%
Global X China Innovation ETF is an actively managed fund that seeks to invest in companies that are economically tied to disruptive innovation in China. Disruptive themes targeted by KEJI may include advancements in technology, changing demographics and consumer preferences, and adaptations to the physical environment. The fund holds 45 securities in its baket with key holdings in consumer discretionary, industrials, information technology and healthcare.
Global X China Innovation ETF has accumulated $2.4 million in its asset base and trades in an average daily volume of around 500 shares. It charges 75 bps in annual fees (read: Top-Performing Broad Foreign ETFs of 2022).
Matthews China Active ETF – Up 13.3%
Matthews China Active ETF is an actively managed fund that seeks to invest in companies capable of sustainable growth based on the fundamental characteristics, including balance sheet information; the number of employees; size and stability of cash flow; management's depth, adaptability and integrity; product lines; marketing strategies; corporate governance; and financial health. MCH holds 63 stocks in its basket with a tilt toward consumer discretionary with a 34.7% share. Financials and information technology also receive a double-digit allocation each.
Matthews China Active ETF has amassed $29.2 million in its asset base while trades in a volume of 18,000 shares a day on average. It charges 79 bps in fees per year from investors.
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.
Get it free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
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.