Not even a quarter into 2025 and we've been on a roller coaster of economic and market events. It's the perfect time for the Exchange conference, where advisors, issuers, and other market experts can come together and share ideas.
The Xtrackers Harvest CSI 300 China A-Shares ETF offers wide exposure to the largest and most liquid stocks in mainland China. Despite concerns about valuations, at least compared to H-shares, and a high expense ratio of 0.65%, ASHR provides diversified access to the Chinese A-share market. Individual foreign investors can't access the Chinese A-share market on their own, making ASHR a valuable investment vehicle.
ASHR offers a compelling buy-the-dip opportunity with a low P/E ratio and improving earnings estimates, despite recent volatility. The ETF has a diversified large-cap portfolio with significant exposure to Financials, Industrials, and Information Technology sectors. ASHR's technical setup shows support between $25-$26, with bullish seasonality expected in November, making it an attractive investment.
ETFs pulled in $19.5 billion in capital last week, with international equity ETFs leading the way. China ETFs registered strong inflows.
During the "Golden Week" when the Chinese A-share market was closed, overseas Chinese stocks and funds experienced notable gains. The Nasdaq Golden Dragon China Index rose 3.1%, reaching its highest level since February 2, 2023, with a weekly gain of 11.9%.
All hope is not lost for Chinese large-caps. Through the pessimism, the fundamental value here is hard to ignore. Also keep an eye out for technical support in the near-term.
Shares in Chinese companies have seen a reversal in fortunes after a few rough years, and some China-focused exchange-traded funds (ETFs) are now outperforming the S&P 500 this year.