Navigating China’s Economy: 5 Best China ETFs

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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