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How Investors Can Tap Into China Market Frenzy With ETFs

Investing with moomoo joined discussion · Oct 3 21:29

China's stock market has extended its rally this week following new stimulus measures announced by the People's Bank of China aimed at revitalizing the struggling economy, despite a pullback on Thursday.

Todd Rosenbluth, Head of Research at VettaFi, joins Wealth! to discuss strategies for investors to engage in the China trade without focusing on individual stocks.

"For much of the year, China has underperformed the broader emerging markets. And so investors actually have been gravitating towards these ex-china ETFs... but this China stimulus that we're talking about could be the necessary boost to get more investors focusing on China," Rosenbluth tells Yahoo Finance.

He highlights ETFs such as $SPDR S&P China ETF (GXC.US)$ for broad market exposure and points to $Xtrackers Harvest CSI 300 China A-Shares ETF (ASHR.US)$ as a way to gain wider access to the Chinese stock market. Additionally, he mentions $KraneShares CSI China Internet ETF (KWEB.US)$ as an excellent option for investors looking to tap into well-known brands and faster-growing companies in China.

Over the last ten trading days, US-listed Chinese stocks ETFs have experienced significant gains, with $Direxion Daily FTSE China Bull 3X Shares ETF (YINN.US)$ soaring more than 130%, $Direxion Daily CSI China Internet Index Bull 2x Shares ETF (CWEB.US)$ climbing over 114%, and $Direxion Daily CSI 300 China A Share Bull 2X Shares (CHAU.US)$ rising by over 92%.

Here are the most significant gainers amid the China market frenzy: