iShares China Index ETF (XCH-T) — Stockchase (2024)

Sep 13, 2024, 7:59 pm

Consensus

Mixed

Valuation

Undervalued

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Chinese stocks have sucked for 3-4 years due to political interference from Beijing. But XCH bottomed a month ago and is rebounding. If this breaks below $13.74, then that means there are more problems in China. Start with a small position. If this continues to rise, he will add to his holding, currently 3% of his portfolio. Risk-reward is really good.

E.T.F.'s

Outlook on China Yes, China is reopening, but China is a strategic threat to North America and there's no transparency in their companies. China has the law of rules, not the law of rule (corruption). He owns nothing in China.

E.T.F.'s

China will be the biggest economy in the world one day. You do want exposure to this big market. Weakness is an opportunity to add to this.

E.T.F.'s

ZCH is more focused on the tech names with BABA counting for 22% of the holdings. There is virtually no financials. XCH has about 20% banks. Must understand what you own. Internet names have been pounded recently. KWEB could be a good way to play it.

E.T.F.'s

(A Top Pick Aug 12/19, Up 13%) China lowered their tariff on US goods. We have a trend here but will have resistance in the high $20s. If we get through that then away we go. He would add to this name. It would, however, come off with any correction in the next couple of weeks.

E.T.F.'s

It covers the 50 largest Chinese stocks. We are coming back to test. Really good risk/reward.

E.T.F.'s

Doesn’t think 2014 is going to be China’s year. Maybe 2015 will be the year. There’s certainly some recovery in emerging markets banks.

E.T.F.'s

China double bull ETF? China Index ETF is the only thing he has. Sector and Country plays are a little more expensive so it costs about 85 basis points, which is more than he likes to pay for an ETF. To get a double bull, he suspects he would have to go through the US.

E.T.F.'s

China, Good for Asian exposure.

E.T.F.'s

China Index ETF (XCH-T) versus CNX Nifty India ETF (XID-T)? Likes both a China specific and India specific product.

E.T.F.'s

China Index ETF. Gives you a play on China. There has been such a pullback in China this would be a good time to look at this. Would consider having 5% of China in your portfolio.

E.T.F.'s

(Market Call Minute.) China Index ETF. This is good but he would prefer emerging-market ETF (EEM-N) or Brazil over China right now.

E.T.F.'s

XCH-T, which is unhedged, or the ZCH-T that is hedged? Really depends on what you think the Yuan is going to do. If you believe it is going to rise and would not negatively impact revenues, he would go with this one.

E.T.F.'s