Xtrackers Harvest CSI 300 China A-Shares ETF
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It's been a good year for international equity ETFs. As a category, broad exposure funds tapping into both developed and emerging market equities have delivered outsized gains relative to U.S. markets this year, as well as much sought portfolio diversification.
One of the most heavily traded China ETFs, iShares MSCI China, is up nearly 40% year to date.
China's ongoing negative PPI supports a deflationary trend, benefiting global markets and providing a constructive backdrop for Xtrackers Harvest CSI 300 China A-Shares ETF. ASHR remains attractively valued with a low P/E ratio, solid long-term EPS growth, and a fair PEG, supporting my continued buy rating. Technical momentum is strong, with shares testing key resistance and a potential upside target of $35 if the uptrend persists.
China's Q2 GDP beat forecasts at 5.2%, easing stimulus pressure but exposing cracks in demand and real estate. Tap ETFs like MCHI and FXI.
DWS has operated in the ETF space via its Xtrackers family of funds in the US for nearly 20 years. It has flown under the radar compared to the largest ETF issuers.
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.
Trump's tariffs cause short-term volatility, but long-term market impact is minimal; earnings remain the key focus for investors. The three countries in questions are Canada, China, and Mexico. This blog dives into several major companies domiciled in one of those three countries. In the long-term scheme of things the fundamentals of the companies behind these ADRs and stocks are likely to be more deterministic than any geopolitical factors.
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%.
Chinese companies are being encouraged to return cash to shareholders - and are finding good reasons to do so. Regulators are encouraging companies to focus on shareholder returns, and changing macroeconomic conditions are making it easier for Chinese companies to pay dividends. Given the risks, we think an active investing approach is especially important when investing in high-dividend Chinese stocks.
The latest figures published by the People's Bank of China show that credit and liquidity are stalling as demand for new loans declines. Deteriorating confidence in China's prospects explains why households prefer paying down debts while companies borrow less.
Data came in generally in line or slightly weaker than forecasts, as weak confidence continued to depress investment and consumption. New home prices fell by -0.65% MoM in July, compared to a -0.67% MoM drop in June.
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.
The People's Bank of China kept the one-year medium-term lending facility rate unchanged at 2.5% today, in line with market expectations. We believe that in conjunction with today's data releases and the start of rate cuts in other central banks such as the European Central Bank and Bank of Canada, the odds of a PBoC rate cut in the coming months have risen.
Key economic indicators are mixed in China and, in fact, were mostly weaker than expected last month. So, policymakers are now stepping up support for the property sector in particular.
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.
Global equity ETFs have seen a steady drumbeat of inflows all year long, but one major player has been left out of the party. China has climbed a great wall of worry for years – with a property debt crisis, a disastrous equity slump, and a slow exit from COVID-19 restrictions.
China's economy grew 5.3% in the first quarter of 2024, outpacing expectations. Despite the optimistic growth forecasts, contrarian economic data cast shadows over the long-term outlook.