|Bid||36.51 x 800|
|Ask||36.68 x 1100|
|Day's Range||36.62 - 36.64|
|52 Week Range||30.57 - 46.37|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.73|
|Expense Ratio (net)||0.70%|
The entire investment community is hoping for positive results from the G-20 summit meeting. We discuss some ETFs which are set to gain directly from any positive development.
Shares of Weibo Corp. plunged 14% toward a more than 2-year low in premarket trade Thursday, after the China-based social media company beat first-quarter profit expectations but provided second-quarter revenue outlook that was below analyst projections. Net income rose to $150.4 million, or 66 cents a share, from $99.1 million, or 44 cents a share, in the year-ago period. Excluding non-recurring items, adjusted EPS rose to 56 cents from 50 cents, to beat the FactSet consensus of 53 cents. Revenue rose 14% to $399.2 million, just shy of the FactSet consensus of $399.5 million. Monthly active users increased about 13% to 465 million at the end of March. For the second quarter, the company expects revenue of $427 million to $437 million, compared with the FactSet consensus of $482.1 million. Weibo said its outlook reflects currency translation risks, and assumes an average exchange rate of 6.90 renminbi per dollar; the current rate is RMB 6.92. The stock, which is on track to open at the lowest price seen during regular-session hour since January 2017, has tumbled 25.3% over the past three months through Wednesday, while the Invesco Golden Dragon China ETF has lost 7.0% and the S&P 500 has gained 2.3%.
From the fallout caused by a continuing trade war with China to the continued uncertainty posed by Brexit to ever-present geopolitical risks in the Middle East, the headlines don’t inspire confidence. While this ETF has indeed tailed off recently on trade-war uncertainty and its longer-term performance is more challenged, it is still up about 22% year-to-date.
Amid escalating trade war tensions, China's economy disappoints investors with a slowdown in retail sales, industrial output and declining investments.
Recent escalations in the trade war between the U.S. and China have confirmed investors' fears that the spat is far from over. Emerging markets exchange-traded funds (ETFs) had been solid performers this year and Chinese ETFs were leaders in that group, but the emerging markets bull thesis is dealt a significant blow if Chinese stocks are struggling. Remember this: Chinese equities represent approximately a third of the MSCI Emerging Markets Index.Over the near-term, these are potentially tenuous times for Chinese ETFs, especially with the G20 summit about five weeks away. * 7 Stocks to Buy that Lost 10% Last Week Investors that currently own China ETFs do not need to respond to negative price action by immediately dumping their positions, but for investors not currently holding Chinese ETFs, some of the following funds may be worth avoiding until trade tensions cool.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Global X MSCI China Information Technology ETF (CHIK) Expense Ratio: 0.65%, or $65 annually per $10,000 investedIn more sanguine market environments, there is definitely something to be said for China sector investing, particularly in the country's sprawling consumer discretionary, internet and technology sectors. The other side of that coin is that Chinese technology stocks are vulnerable to the trade spat. Specifically, the Global X MSCI China Information Technology ETF (NYSEARCA:CHIK) has taken a major hit after news of continued tariffs hit the headlines.CHIK, which debuted last December, holds 42 stocks, including electronic components makers, hardware and software providers and semiconductor manufacturers. Each of those industries has some vulnerability in the current trade spat.As highlighted by its still strong year-to-date performance, this China ETF has plenty of potential to deliver strong returns. Investors considering CHIK are not off base with that thesis, but they should wait for macro risk to diminish before embracing this China ETF. First Trust China AlphaDEX Fund (FCA)Expense Ratio: 0.80%The First Trust China AlphaDEX Fund (NASDAQ:FCA) is not the most well-known China ETF. FCA is over eight years old and has just $11 million in assets under management, but that is not the primary reason to avoid this China ETF amid trade tensions.FCA was one of nearly 20 U.S.-listed China ETFs that lost 3% or more on Monday, May 6, when news of the now implemented tariffs first broke. In fact, just two Chinese ETFs notched bigger one-day losses than the 5.22% shed by FCA. Interestingly, FCA's struggles amid heightened trade risk are not attributable to large weights to growth sectors, such as communication services, consumer discretionary and technology. * 10 Stocks to Sell Before They Tank Your Portfolio Those sectors combine for just over 18% of FCA's weight. This China ETF allocates almost 35% of its combined weight to the defensive real estate and utilities sectors. FCA's recent weak price action suggests even defensive sectors with small export exposure can be punished by trade fears. Invesco Golden Dragon China ETF (PGJ)Expense Ratio: 0.70%The Invesco Golden Dragon China ETF (NASDAQ:PGJ) is an example of a "not right now" China ETF. PGJ is up 30.50% year-to-date, but it has be in the red recently. The problem is the fund's recent decline puts PGJ in danger of falling below its 50-day moving average, an area the China ETF has not closed below since early January.PGJ holds 64 stocks, but this China ETF features significant sector-level concentration risk as the consumer discretionary and communication services sectors combine for over 84% of the fund's weight. That means this portfolio is heavy on growth stocks, a trait that could increase PGJ's volatility and downside pressure if Chinese stocks falter for an extended period.A best-case scenario for Chinese stocks "would mean the recent pullback is a buying opportunity, but if trade talks are canceled or go astray, it would force analysts and economists to revisit their forecasts. It would also mean China would look to more stimulus to help stabilize its economy," reports Barron's.As of this writing, Todd Shriber did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 10 Retirement Stocks That Won't Wilt in a Bear Market * 5 Consumer Stocks Ready to Push Higher * 3 of the Best ETFs to Buy for a Play on Gold Stocks Compare Brokers The post 3 Chinese ETFs to Avoid Until Trade Tensions Thaw appeared first on InvestorPlace.
The latest data suggests an upbeat Chinese economy. But, the uncertainty over the sustenance of the performance puts certain China ETFs in focus.
We are presenting a bunch of top performing ETFs of the first quarter with a solid Zacks ETF Rank 1 or 2 which are expected to outperform in the quarter ahead.
Wall Street should start April on a solid note though pockets of volatility will remain. Against this backdrop, investors can pick these ETFs.
China stocks are poised to go up further, especially in the wake of Trump's announcement. Investors should definitely tap the opportune moment with the following five ETFs.
China-related exchange traded funds climb after Beijing announced a new round of economic stimulus measures ahead of trade talks with Washington D.C. Among China-related ETFs, technology-heavy strategies were leading the charge Friday, with the Invesco Golden Dragon China ETF (PGJ) up 6.4%, KraneShares CSI China Internet Fund (KWEB) 6.2% higher and Invesco China Technology ETF (CQQQ) up 5.4%. Chinese premier Li Keqiang urged banks to increase lending to the private sector while the People’s Bank of China cut a key reserve ratio to encourage lending from commercial banks, the Financial Times reports.
Chinese stocks rallied Monday, with technology-related ETFs taking the lead, after the People's Bank of China signaled it would take a more proactive approach to combating a stronger U.S. dollar and uncertainty surrounding the trade war between Washington D.C. and Beijing. Additionally, the broader iShares China Large-Cap ETF (FXI) added 1.9% and Xtrackers CSI 300 China A-Shares ETF (NYSEArca: ASHR ) , which tracks mainland Chinese A-shares, increased 2.2%, with both testing their short-term resistance at the 50-day simple moving average. The China-related ETFs strengthened on a more optimistic outlook on the yuan currency.
China country-specific exchange traded funds, led by technology focused strategies, were among the best performers Monday ahead of trade talks between the U.S. and China. On Monday, the technology-heavy PowerShares Golden Dragon China Portfolio (PGJ) rose 2.7% and KraneShares CSI China Internet Fund (KWEB) gained 2.2%. Traders were largely optimistic as a delegation led by China’s vice commerce minister, Wang Shouwen, is expected to conduct two days of trade talks in Washington beginning Wednesday, marking the first formal negotiations since Washington imposed tariffs on $50bn of Chinese imports, the Financial Times reports.