Chinese stocks just saw their worst week since October, but a few China ETFs are still beating the market

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Chinese stocks just saw their worst week since October, but a few China ETFs are still beating the market $MCHI $WCHN $CXSE (via CNBCETFEdge)

"WCHN is 50% A-shares, which is a very different look than the MSCI China. And so we think it's just a better beta security. It is a cap-weighted security."

With U.S.-based and Hong Kong-listed companies in the mix, Schwartz said WCHN offers "the broadest beta solution in the marketplace today." But outperforming even that is WisdomTree's China ex-State Owned Enterprises Fund, which excludes government-owned Chinese entities. "This was an example where there hadn't been anyone who had ever created that kind of exposure," Schwartz said. "There are still very few places where you can even get that information. We had to create our own database. And for ... the main China ETF, it was 75-80% state-run banks and energy. This was a very different exposure and, really, 30% of all emerging markets have this.

 

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