|Bid||24.52 x 1200|
|Ask||24.55 x 900|
|Day's Range||24.13 - 24.60|
|52 Week Range||14.35 - 24.60|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||29.88%|
|Beta (5Y Monthly)||1.06|
|Expense Ratio (net)||0.65%|
Exchange-traded funds that track the performance of Chinese companies stumbled Thursday as the House of Representatives considers a bill that could ban Chinese firms from listing on U.S. exchanges, after a similar bill passed the Senate unanimously Wednesday. The Invesco China Technology ETF was down 2.7% in early trade Thursday, while shares of Global X MSCI China Consumer Discretionary ETF shed 2.3% and KraneShares CSI China Internet ETF declined 1.8%. The bill would require that foreign companies let the Public Company Accounting Oversight Board oversee the auditing of their financial records if they want to raise money by selling stocks or bonds to the American public. All U.S. companies and most foreign firms already work with the PCAOB in this way, but Chinese firms do not. Some analysts predicted the bill could be swiftly approved as Congress looks to signal toughness toward China in an election year. Trump economic advisor Larry Kudlow told Fox Business Wednesday that the administration supports measures to increase oversight of Chinese firms, though the White House hasn't publicly stated an opinion on this particular legislation. Also under pressure were American Depository Receipts of Chinese tech giants Alibaba Holding Group Ltd. and JD.com . ADRs for another Chinese tech firm, Baidu Inc., were up 1.2% after a Reuters report the firm was considering voluntarily delisting from the Nasdaq to boost its valuation.
China exchange-traded funds (ETFs) offer a way for investors to geographically diversify their portfolios by owning a basket of companies in the world's second-largest economy. Despite the large number of state-owned Chinese enterprises, there are still many companies whose shares are publicly traded and provide investors with opportunities.
Policy easing, subsiding trade tensions, technological disruption and solid household savings should boost these China ETFs in 2020, even after a solid 2019.
Investors seeking to tap Singles' Day benefits in a diversified way should focus on the following four ETFs that provide substantial exposure to the Chinese e-commerce segment.
At a time when trade tensions between the U.S. and China are running high, pressuring stocks in both countries, considering Chinese stocks (particularly those in cyclical sectors), may seem like a bold ...
When Alibaba Group Holding Ltd. (NYSE:BABA) commenced its initial public offering (IPO) nearly five years ago, the most frequently drawn comparison was that Alibaba is "the Amazon.com (NASDAQ:AMZN) of China." Since than Alibaba stock has only perpetuated the comparison.Source: Shutterstock The comparison is compelling due to the sheer mass of China's online retail market. However, what makes Alibaba stock an even more interesting investment is the company's increasing willingness to go head-to-head with Amazon in a variety of market segments and locations, including the U.S.Last week, the company said it will now allow U.S.-based sellers to market their goods to Chinese buyers, news that contributed to Alibaba stock posting a weekly gain of 3.32%.InvestorPlace - Stock Market News, Stock Advice & Trading Tips"Roughly one-third of buyers on Alibaba are US-based," reports The New York Post. "More than 95% of sellers come from China. This plan will open up markets to US merchants in countries including India, Brazil and Canada. US merchants will also be able to sell to other US-based businesses." * 7 Semiconductor Stocks to Buy for Your Inner Geek Alibaba and AmazonThere are some interesting statistics regarding the Amazon marketplace, the place where small businesses sell their goods to buyers. For example, there are supposedly over 5 million sellers on the 12 Amazon marketplaces in the U.S., U.K., Germany, France, Canada, Japan, India, Italy, Spain, Mexico, Brazil, and China, but data indicate there are roughly 1.8 million items for sale.What is clear is that Amazon is the world's largest online retailer and posted nearly $233 billion in 2018 and its revenue and earnings are growing, despite a recent quarterly hiccup. However, it is easy to understand why sellers would consider embracing Alibaba. Simple math confirms as much.Various research firms indicate Amazon's recently completed two-day Prime Day affair generated $6 billion. Sounds nice, but that number is paltry is compared to the revenue generated by China's Singles Day in 2018. With Alibaba leading the way, Singles Day, a 24-hour event, posted 2018 revenue of $30 billion.In an article out earlier this month, Fast Company appears to be spot on with the headline: "Amazon Prime Day is a Cheap Knockoff of Alibaba's Singles Day." Alibaba Is Still Growing FastKeeping with the theme of simple math, data confirm that China's internet and direct marketing retail segments are growing significantly faster than those in the U.S."Analysts expect the sector to experience 12% overall sales growth in the next year, compared to just 6% in the US," according to Global X research. "Despite higher growth expectations, the Chinese sector has lower debt burdens and is cheaper across forward price-to-earnings, forward price-to-sales, price-to-book metrics."Global X sponsors the Global X MSCI China Consumer Discretionary ETF (NYSEARCA:CHIQ), an exchange traded fund (ETF) in which Alibaba stock is one of the largest holdings.On a more basic level, many sellers are growing frustrated with Amazon, complaining that the company wantonly suspends or closes accounts with little or no notice while leaving the sellers without much recourse. Think of it this way: should there be lawyers dedicated to helping jilted Amazon sellers? In a perfect world, no, that field of law should not exist, but there are in fact attorneys who specialize in this. The Bottom Line on Alibaba StockThe point here is not to assail Amazon stock. The company has proven adept at creating shareholder appreciation, a theme that is likely to continue as the e-commerce and online retail markets grow.However, Amazon's dominance has disadvantages, including the presentation of some headline risk as regulators and candidates for the presidency complain that Amazon has had an adverse impact on small retailers.These are not issues Alibaba has to contend with in China, home to a much larger online retail market than that of the U.S. Plus, Alibaba stock can deliver comparable or superior growth to that of Amazon with earnings multiples that, for now at least, are lower. Alibaba stock trades at 20.50x forward earnings compared to 50.65x for Amazon.Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Semiconductor Stocks to Buy for Your Inner Geek * 7 Stocks to Buy That Save You Money * 4 Stocks to Sell Now The post It Doesn't Look like There's Much That Can Stop Alibaba Stock appeared first on InvestorPlace.
There was a time when sector exchange-traded funds (ETFs) were widely considered the territory of more sophisticated, tactical investors. But now, thanks in large part to the proliferation of industry and sector ETFs, more advisors and investors are using these products.Yes, sector ETFs still have plenty of applications on a tactical basis. With markets in the midst of another earnings season, short-term traders can tap sector ETFs when a particular group delivers a slew of earnings reports in a condensed time frame, as has been the case with financial services stocks this week.Additionally, investors can tap sector ETFs for longer-term purposes. Say you want to generate income or lower volatility, sector ETFs tracking consumer staples or utilities stocks could make for ideal additions to your portfolio. Likewise, investors wanting to latch onto growth may want to consider positions in dedicated consumer discretionary or technology sector ETFs.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Stocks to Buy From This Superstar Fund For investors looking for dedicated sector exposure, here are some industry-specific funds to consider. Fidelity MSCI Communication Services ETF (FCOM)Expense ratio: 0.084% per year, or $8.40 on a $10,000 investment.The communication services sector is a mix of growth stocks, such as Facebook Inc. (NASDAQ:FB) and Alphabet Inc. (NASDAQ:GOOG NASDAQ:GOOGL), and old guard telecommunications stocks. However, sector ETFs such as the Fidelity MSCI Communication Services ETF (NYSEARCA:FCOM) are usually heavily allocated to the group's growth fare.For example, Facebook and the two classes of Alphabet stock combine for over 40% of FCOM's weight. This sector ETF and its rivals are worth considering over the near term for multiple reasons. First, Alphabet and Facebook, for varying reasons, are facing considerable Congressional scrutiny and there are efforts to break these and other tech companies up.Second, more than 60% of the communication services sector reports earnings this week. For long-term investors, FCOM has utility as well, including the fact that Fidelity's sector ETF's are the industry's cheapest. Consumer Discretionary Select Sector SPDR (XLY)Source: Shutterstock Expense ratio: 0.13%The Consumer Discretionary Select Sector SPDR (NYSEARCA:XLY) is the oldest and largest sector ETF dedicated to consumer cyclical stocks and has, over the years, risen to acclaim for being an adequate proxy on shares of Amazon.com (NASDAQ:AMZN). That is an accurate assessment as this sector ETF allocates about 23.5% of its weight to Amazon, more than double its second-largest holding.All three of the Dow Jones Industrial Average's consumer discretionary components -- Home Depot (NYSE:HD), McDonald's (NYSE:MCD) and NIKE (NYSE:NKE) -- reside in XLY and combine for over 22% of the fund's weight. * 7 Stocks to Buy This Summer Earnings Season XLY provides exposure to "retail (specialty, multiline, internet and direct marketing); hotels, restaurants and leisure; textiles, apparel and luxury goods; household durables; automobiles; auto components; distributors; leisure products; and diversified consumer services" companies, according to State Street. Global X MSCI China Consumer Discretionary ETF (CHIQ) Source: Shutterstock Expense ratio: 0.65%Let's stick with consumer cyclical stocks for a moment and let the Global X MSCI China Consumer Discretionary ETF (NYSEARCA:CHIQ) serve as a reminder that investors do not need to confine their search for the best sector ETFs to domestic offerings. There are plenty of ex-US sector ETFs on the market and one of the better offerings, at least for risk-tolerant investors, is CHIQ."Among the most powerful are those areas tied to the rising impact of China's consumers, who have experienced years of high wage growth, migration into cities, and an expansion of internet connectivity," said Global X in a recent note. "The government has also made consumption a priority as the economy transitions away from export-led industries."Sure, CHIQ can be seen as the XLY of China and, yes, that is a positive trait. Data confirm as much."China's Consumer Discretionary sector is the country's largest by total market cap, yet it is still just half the size of its US counterpart. This is despite the fact that China's population is four times larger than the US's and is experiencing a rapidly growing middle class, suggesting that the sector is still in its early stages of growth," according to Global X. Health Care Select Sector SPDR (XLV)Source: Shutterstock Expense ratio: 0.13%After ranking as the S&P 500's best-performing sector in 2018, the healthcare sector is the worst-performing group in the U.S. this year. Still, the Health Care Select Sector SPDR (NYSEARCA:XLV) is up more than 6% year-to-date despite a political environment that, at times, feels increasingly hostile toward healthcare stocks.Aside from its defensive traits, there are reasons to consider XLV or related sector ETFs, including these funds being home to some big-name stocks that are expected to lead major U.S. equity benchmarks to new highs. Plus, the sector's 2019 lethargy could be a sign value is emerging in the S&P 500's second-largest sector weight. * 5 Dow Jones Stocks to Sell Before the Market Slumps "A closer look shows that the large drugmakers are holding back the health care sector," reports Investor's Business Daily. "Of the 10 worst-performing stocks in the sector and the XLV ETF, seven are diversified pharmaceutical firms or biotechs. These stocks tend to suffer during years of heavy political activity. Already, several Democratic candidates have put drug prices at the forefront of their campaigns." Invesco S&P 500 Equal Weight Consumer Staples ETF (RHS)Source: Shutterstock Expense ratio: 0.40%Most consumer staples funds, and sector ETFs for that matter, are cap-weighted funds, but investors may able to generate higher returns in the right settings by favoring an equal-weight strategy such as the Invesco S&P 500 Equal Weight Consumer Staples ETF (NYSEARCA:RHS). The obvious difference between RHS and a cap-weighted rival is, well, average market value.The average market capitalization of RHS's 33 holdings is $63.8 billion, but the figure swells to $150.8 billion for biggest cap-weighted consumer staples ETF. In the cap-weighted Consumer Staples Select Sector Index, the largest holding is Procter & Gamble (NYSE:PG) at nearly 16% of the benchmark's weight. Conversely, the top holding in RHS commands barely more than 3% of the sector ETF's roster.Although RHS leans toward smaller stocks, it is not significantly more volatile than competing cap-weighted funds. Invesco S&P SmallCap Information Technology ETF (PSCT)Source: Shutterstock Expense ratio: 0.29%For years, investors have been regaled with tales of exponential returns offered by small-cap technology stocks. However, stock picking in this arena is difficult, making the Invesco S&P SmallCap Information Technology ETF (NASDAQ:PSCT) an appealing options for those seeking small-cap tech exposure.PSCT's 87 holdings have an average market value of $1.83 billion, putting this sector fund at the higher end of small-cap territory. As is to be expected, PSCT is a growth-heavy sector with growth stocks accounting for quadruple the weight assigned to the fund's value fare.While PSCT is not excessively valued compared to broader small-cap ETFs, the sector ETF usually is much more volatile than standard small-cap benchmarks, indicating this fund is more appropriate for risk-tolerant investors. That said, PSCT offers compensation for that elevated volatility because it usually outperforms basic small-cap indexes over longer holding periods. Hoya Capital Housing ETF (HOMZ)Expense ratio: 0.45%Real estate is one of the smallest sector weights in the S&P 500, but despite that diminutive status, the group is well-represented in the ETF space. One of the new offerings on that front is the Hoya Capital Housing ETF (NYSEARCA:HOMZ), which focuses on residential real estate and the related equity investment opportunities.HOMZ follows the Hoya Capital Housing 100 Index, an in-house benchmark designed to provide exposure to various elements of the home-buying process, including home builders, home rental operators, home services and technology firms, and home improvement retailers. The fund, which expects to pay a dividend on a monthly basis, is also levered to the rental theme."HOMZ offers exposure to the companies that own more than a million rental units across the United States including apartments, single family rentals, and affordable housing," according to the issuer. * 7 5G Stocks to Connect Your Portfolio To HOMZ is about four months old and is up nearly 9% since inception.Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy From This Superstar Fund * 7 Stocks to Buy This Summer Earnings Season * 7 Marijuana Penny Stocks to Consider for Those Who Can Handle Risk The post 7 Great Sector ETFs to Buy for the Short or Long Term appeared first on InvestorPlace.
NEW YORK , July 10, 2019 /PRNewswire/ -- Global X ETFs, the New York -based provider of exchange-traded funds (ETFs), today announced the inclusion of three additional ETFs to Schwab ETF OneSource, one ...