Navigating China’s Economy: 5 Best China ETFs

In this article, we discuss 5 best China ETFs to buy. If you want to read our discussion on the Chinese economy, head over to Navigating China’s Economy: 10 Best China ETFs. 

5. SPDR S&P China ETF (NYSE:GXC)

5-year Share Price Performance as of March 22: -34.52%

SPDR S&P China ETF (NYSE:GXC) aims to match the total return performance of the S&P China BMI Index before fees and expenses. It offers exposure to publicly traded companies based in China that are accessible to foreign investors. SPDR S&P China ETF (NYSE:GXC), as of March 21, 2024, holds nearly $492 million in assets under management, with a gross expense ratio of 0.59%. The ETF has a portfolio comprising 1,177 stocks. SPDR S&P China ETF (NYSE:GXC) is one of the best China ETFs to invest in. 

NetEase, Inc. (NASDAQ:NTES) is one of the top holdings of SPDR S&P China ETF (NYSE:GXC). NetEase, Inc. (NASDAQ:NTES) is involved in multiple online businesses including gaming, music streaming, intelligent learning services, and internet content in China and internationally. On March 1, NetEase, Inc. (NASDAQ:NTES) declared a $1.08 per share quarterly dividend. The dividend is payable on March 28, to shareholders on record as of March 14. 

According to Insider Monkey’s fourth quarter database, 36 hedge funds were bullish on NetEase, Inc. (NASDAQ:NTES), compared to 25 funds in the last quarter. 

4. Xtrackers Harvest CSI 300 China A-Shares ETF (NYSE:ASHR)

5-year Share Price Performance as of March 22: -15.98%

Xtrackers Harvest CSI 300 China A-Shares ETF (NYSE:ASHR) is a passively managed fund that aims to match the performance of the CSI 300 Index before fees and expenses. As of March 21, 2024, Xtrackers Harvest CSI 300 China A-Shares ETF (NYSE:ASHR) holds net assets worth $1.72 billion, with an expense ratio of 0.65%. It is one of the best China ETFs to buy.

Kweichow Moutai Co., Ltd. (600519.SS) is the largest holding of Xtrackers Harvest CSI 300 China A-Shares ETF (NYSE:ASHR). Kweichow Moutai is a producer and distributor of liquor products in China and globally. 

3. iShares MSCI China A ETF (CBOE:CNYA)

5-year Share Price Performance as of March 22: -1.49%

iShares MSCI China A ETF (CBOE:CNYA) aims to replicate the performance of the MSCI China A Inclusion Index, consisting of domestic Chinese equities traded on the Shanghai or Shenzhen Stock Exchange. As of March 22, 2024, the ETF holds $186.6 million in net assets, with an expense ratio of 0.60% and a portfolio of 520 stocks. iShares MSCI China A ETF (CBOE:CNYA) is one of the best China ETFs to monitor. 

Contemporary Amperex Technology Co., Limited (300750.SZ) is one of the largest holdings of iShares MSCI China A ETF (CBOE:CNYA). Contemporary Amperex Technology Co., Limited (300750.SZ) is a global company specializing in the development, manufacturing, sale, and after-sales service of power battery systems, energy storage batteries, and battery materials.

2. KraneShares MSCI China Clean Technology ETF (NYSE:KGRN)

5-year Share Price Performance as of March 22: 2.27%

KraneShares MSCI China Clean Technology ETF (NYSE:KGRN) tracks the MSCI China IMI Environment 10/40 Index, which consists of Chinese companies involved in clean technology and promoting environmental sustainability. The index comprises securities generating at least 50% of their revenues from environmentally beneficial products and services across five key themes – Alternative Energy, Sustainable Water, Green Building, Pollution Prevention, and Energy Efficiency. KraneShares MSCI China Clean Technology ETF (NYSE:KGRN) is one of the best China ETFs to buy. As of March 21, 2024, the ETF holds net assets of $61.45 million, along with an expense ratio of 0.79%. 

Boyd Gaming Corporation (NYSE:BYD) is the largest holding of KraneShares MSCI China Clean Technology ETF (NYSE:KGRN). It is a gaming company that operates through segments including Las Vegas Locals, Downtown Las Vegas, Midwest & South, and Online. On February 29, Boyd Gaming Corporation (NYSE:BYD) declared a $0.17 per share quarterly dividend, a 6.3% increase from its prior dividend of $0.16. The dividend is payable on April 15, to shareholders on record as of March 15. 

According to Insider Monkey’s fourth quarter database, 34 hedge funds were bullish on Boyd Gaming Corporation (NYSE:BYD), compared to 30 funds in the prior quarter. John W. Rogers’ Ariel Investments is the largest stakeholder of the company, with 3 million shares worth $192.3 million. 

Baron Discovery Fund made the following comment about Boyd Gaming Corporation (NYSE:BYD) in its Q4 2022 investor letter:

“Shares of U.S. regional casino operator Boyd Gaming Corporation (NYSE:BYD), increased in the fourth quarter due to stable consumer visitation and spending levels despite an uncertain macro environment. The company continued to generate strong free cash flow that it is using to invest into its casinos, pay out dividends, and buy back shares. The company has repurchased 8% of its shares over the past year while paying out a 1% dividend. We believe Boyd can withstand any bumps in the economy given its strong balance sheet and free cash flow. We also don’t think Boyd’s share price reflects its 5% ownership in online bookmaker FanDuel. We continue to be positive on the company’s long-term prospects.”

1. Global X MSCI China Consumer Discretionary ETF (NYSE:CHIQ)

5-year Share Price Performance as of March 22: 2.64%

Global X MSCI China Consumer Discretionary ETF (NYSE:CHIQ) seeks to match the price and yield performance of the MSCI China Consumer Discretionary 10/50 Index before fees and expenses. As of March 22, 2024, Global X MSCI China Consumer Discretionary ETF (NYSE:CHIQ)’s total assets amounted to $240.63 million, along with an expense ratio of 0.65% and a portfolio comprising 77 stocks. It is one of the best China ETFs to buy. 

JD.com, Inc. (NASDAQ:JD) is one of the top holdings of Global X MSCI China Consumer Discretionary ETF (NYSE:CHIQ). On March 6, JD.com, Inc. (NASDAQ:JD) declared a $0.76 per ADS cash dividend. The dividend is payable on April 29, to shareholders on record as of April 5. The company has also initiated a new share repurchase program for the buyback of up to $3 billion worth of its shares within the next 36 months, until March 2027.

According to Insider Monkey’s fourth quarter database, 56 hedge funds were bullish on JD.com, Inc. (NASDAQ:JD), compared to 53 funds in the prior quarter. Chase Coleman’s Tiger Global Management is the largest stakeholder of the company, with 8.80 million shares worth $254.3 million. 

Baron Emerging Markets Fund made the following comment about JD.com, Inc. (NASDAQ:JD) in its first quarter 2023 investor letter:

“JD.com, Inc. (NASDAQ:JD) is one of the three largest e-commerce platforms in China. Shares declined after the company reported a slowdown in fourth quarter sales and commented that deliberate culling of unprofitable SKUs would also be a drag on headline revenue growth in the first half of 2023. We believe the slowdown was driven by the peak in Chinese COVID lockdowns, which have since ended, and the elimination or reduction of unprofitable business is better for long-term margins and returns on capital. We remain investors.”

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