GXC (SPDR S&P China ETF) remains a buy, supported by improving profit expectations and solid year-to-date outperformance versus the S&P 500. The ETF trades at a modest sub-14x P/E, with large-cap, consumer discretionary, and communication services exposures dominating the portfolio. Liquidity is mixed—low average daily volume and wide bid/ask spreads necessitate limit orders, especially near market open.
Both U.S. and Chinese stocks rallied due to a de-escalation in the trade war, boosting the S&P 500 and Hang Seng Indexes. I reiterate a 'Buy' rating on the SPDR S&P China ETF due to its attractive valuation and strong dividend yield. GXC has high exposure to large caps and a balanced mix of value, blend, and growth, despite a concentrated allocation in consumer discretionary and communication services.
GXC: China's Industrial Rebound And Stimulus Will Support Momentum In 2025
I have a buy rating on the SPDR S&P China ETF (GXC) due to its low P/E ratio, improving technical trends, and favorable seasonality. GXC offers exposure to a broad range of Chinese equities, including A Shares, with a low expense ratio and higher dividend yield than competitors. The ETF's portfolio is heavily weighted in Consumer Discretionary, Communication Services, and Information Technology sectors, with minimal exposure to resource stocks.
China stocks (^HSI) have extended their rally after the People's Bank of China unveiled new stimulus measures in an effort to recover its struggling economy. Todd Rosenbluth, VettaFi Head of Research, joins Wealth!
China is facing difficulties in transitioning its economy from manufacturing-driven to high-value goods and services, and government policies have also impacted its growth. The Chinese government has introduced a significant stimulus package, including monetary and fiscal measures, to boost its economy. The stimulus measures have led to a short-term surge in the price of the SPDR S&P China ETF, but the long-term impact remains uncertain.
After years of negative returns, Chinese stocks are back. Backed by a much-improved macro/micro setup, this rally likely still has legs. Funds heavier on offshore listings, like GXC, could outperform from here.