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As China Rebounds, Other ETFs Join FXI on the Upside


Here's a list of China ETFs to consider.


That means plenty of attention is being lavished on the iShares FTSE China 25 Index Fund (NYSEARCA:FXI). FXI has a few things working for it. It is the largest China-specific on the market with $5.2 billion in assets under management. It is home to some of the Chinese companies US investors are most familiar with such as CNOOC (NYSE:CEO) and PetroChina (NYSE:PTR). It is also heavily traded with average daily turnover of 13.4 million shares.

There are two primary strikes against FXI. First, it is only home to 26 stocks, a number hardly reflective of the massive Chinese economy. Second, FXI may be popular, but it has a tendency to lag rival China ETFs.

FXI has flexed its muscle in the past month, gaining almost 8.4%. A gain like that in the span of a month is hardly anything to complain about, but FXI's recent strength serves as a reminder there are other funds worth considering on the China ETF block.

EGShares China Infrastructure ETF (NYSEARCA:CHXX): It did not take long for the market to start pricing in the impact of China's recently announced infrastructure stimulus plan on CHXX. Still thinly traded (average volume is less than 4,000 shares per day), CHXX's improving technicals have lead to some high volume days in recent weeks.

Now, momentum is strong in CHXX and the ETF has outpaced FXI by over 200 basis in the past month. More impressive is the fact that CHXX is up nearly 23% since early September.

SPDR S&P China ETF (NYSEARCA:GXC): Over the past month, FXI has outpaced the SPDR S&P China ETF, but GXC is another example of a China ETF with strong technicals. Strong technicals tend to be the reason an ETF moves from flirting with $60 to flirting with $70 in just six weeks.

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No positions in stocks mentioned.

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