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China Investing: Should You Buy These New ETFs?

Eric Dutram


China investing is back in focus thanks to some solid trading out of that country and more hopes for stimulus measures. ETFs tracking the nation have actually been pretty good performers to kick off Q4 and there is hope that they can regain some of their lost momentum.

It also appears that ETF issuers are starting to grow more confident in the China ETF space and have begun to once again launch new products in the segment. While it is nothing like what we saw at the height of the boom, there are now close to three dozen China funds trading on the marketing including several that launched just in October (also see 2 New ETFs with Big Potential).

New China ETFs

But while these China ETFs might be brand new, are they better options for investors? After all these fresh China ETFs go beyond the plain vanilla indexes and seek to offer investors slightly different options in the space, so let’s take a closer look at some of these new choices for investors:

XINA : This ETF from SPDR looks to give investors exposure to the China A-Shares market charging just 65 basis points a year in fees. While this is similar to other ETFs, SPDR does use its own SSGA division to manage the fund instead of a third party, and some believe this could be a safer way to play the space.

ASHX /CNHX: Thanks to recent China currency devaluations, ETF issuers are hoping to strike gold by offering up A-Shares hedged ETFs. These funds look to benefit if China continues to devalue the yuan, but let’s remember that only a tiny devaluation has taken place and it has been nothing like what we have seen in the case of Japan or even Europe (also see the Guide to China Yuan ETF Investing).

HAHA : While the ticker might be a joke, the strategy behind this ETF is nothing to laugh at as it is pretty innovative. The fund will look at both A-Shares and H-Shares investments and choose the version which is the most undervalued in an intriguing way to deliver outperformance.

More Information

For extra information on the China ETF flurry and if these new funds are right for you (as well as my favorites from these newcomers), make sure to watch our short video on the topic below:

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SPDR-MSCI CH A (XINA): ETF Research Reports
 
DEUTS-XT C300 A (ASHX): ETF Research Reports
 
CSOP-CH A IH (CNHX): ETF Research Reports
 
CSOP-C300 A-H D (HAHA): ETF Research Reports
 
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