Diversified Stock Portfolio: 5 Sector ETFs and International ETFs to Buy

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

SPDR S&P China ETF (NYSE:GXC) seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P China BMI Index. The ETF aims to offer a selection of publicly traded companies based in China that are accessible to foreign investors. The fund was established March 20, 2007 and charges an expense ratio of 0.59%. As of February 9, 2023, SPDR S&P China ETF (NYSE:GXC)’s 30-day dividend yield came in at 1.61%, with a semi-annual distribution frequency. SPDR S&P China ETF (NYSE:GXC) has 939 holdings in its portfolio. 

Alibaba Group Holding Limited (NYSE:BABA) is a prominent stock owned by SPDR S&P China ETF (NYSE:GXC), representing 7.71% of the total portfolio. On January 11, Barclays analyst Jiong Shao raised the firm’s price target on Alibaba Group Holding Limited (NYSE:BABA) to $141 from $114 and maintained an Overweight rating on the shares. In a research note to investors, the analyst stated that the company’s results for the quarter ending December are expected to show revenue that is largely in line with expectations and improved margins. He also noted that Alibaba should see a return to growth in gross merchandise volume for the first time in a year in the quarter ending March, which is considered to be a more significant development.

According to Insider Monkey’s Q3 data, 105 hedge funds were bullish on Alibaba Group Holding Limited (NYSE:BABA), and David Blood and Al Gore’s Generation Investment Management held a prominent stake in the company, comprising 4.50 million shares worth $360.7 million. 

Polen Capital made the following comment about Alibaba Group Holding Limited (NYSE:BABA) in its October investor letter:

“Alibaba Group Holding Limited (NYSE:BABA) is the leading e-commerce company in China. The stock was weak over the quarter as they reported a quarterly revenue decline. The company has been heavily impacted by the continued covid-19 lockdowns throughout China and the aggressive rate increases and deteriorating outlook for China’s economy have weighed heavily on the stock. The share price has also been under pressure due to the U.S. Securities and Exchange Commission’s plans to delist Chinese tech stocks in 2024 if they do not provide access to audit files.”