-
Asset Class: China Region Equities
-
Oldest ETF back tested: PGJ
-
Correlation to U.S. Market: 0.69
-
Long-Term Performance: 10.27% CAGR
-
S&P 500 Performance: 10.12% CAGR
-
Back test timeframe: January 2005 – June 2021
-
Number of ETFs available in this asset class: 48
-
Number of ETFs in this asset class that are 10-years old or older: 18
PGJ vs SPY: January 2005 – June 2021
PGJ vs SPY: December 9, 2004 – July 2, 2021
The Deep Value ETF Accumulator rankings for the 18 oldest China Equity ETFs:
The top 4 ranked China Equity ETFs head-to-head comparisons:
CQQQ vs FNI vs PGJ vs CHIQ: February 2010 – June 2021
CQQQ vs FNI vs PGJ vs CHIQ: December 8, 2009 – July 2, 2021
Stated objectives of the top 4 ranked China Equity ETFs:
CQQQ – The Invesco China Technology ETF (Fund) is based on the FTSE China Incl A 25% Technology Capped Index (Index). The Fund will invest at least 80% of its total assets in securities that comprise the Index as well as American depositary receipts and global depositary receipts based on the securities in the Index. The Index includes constituents of the FTSE China Index and FTSE China A Stock Connect Index that are classified as information technology securities, including China A-shares and China B-shares. The Fund and the Index are rebalanced quarterly.
FNI – The First Trust Chindia ETF is an exchange-traded fund. The investment objective of the Fund is to seek investment results that correspond generally to the price and yield, before fees and expenses, of an equity index called the ISE ChIndia Index™. Establish the total population of companies that are domiciled in either India or China and whose shares or ADRs are listed on a U.S. securities exchange. Remove companies that do not meet the component eligibility criteria which include minimum market capitalization and trading volume requirements. Rank the remaining stocks by their liquidity score. (Rank all eligible stocks separately by market cap and three month average daily dollar volume. Sum the ranks for each stock to get a liquidity score.) Select the top 25 stocks from each country by liquidity score. If less than 25 stocks are available for a country, then continue selecting stocks from the other country until a maximum of 50 stocks are selected. Weight according to the following methodology: top three ranked stocks in each country are weighted at 7% each. the next three in each country are weighted at 4% each. the next three in each country are weighted at 2% each and the remaining stocks are equally weighted. The ISE ChIndia IndexTM is rebalanced on the application of the above model on a semi-annual basis.
PGJ – The Invesco Golden Dragon China ETF (Fund) is based on the NASDAQ Golden Dragon China Index (Index). The Fund generally will invest at least 90% of its total assets in equity securities of companies deriving a majority of their revenues from the People’s Republic of China and that comprise the Index. The Index is composed of US exchange-listed companies that are headquartered or incorporated in the People’s Republic of China. The Fund and the Index are rebalanced and reconstituted quarterly.
CHIQ – The Global X MSCI China Consumer Discretionary ETF (CHIQ) seeks to invest in large- and mid-capitalization segments of the MSCI China Index that are classified in the Consumer Discretionary Sector as per the Global Industry Classification System (GICS). The Global X MSCI China Consumer Discretionary ETF (CHIQ) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI China Consumer Discretionary 10/50 Index. Targeted Exposure – CHIQ is a targeted play on the Consumer Discretionary Sector in China – the world’s second largest economy by GDP. ETF Efficiency – In a single trade, CHIQ delivers access to dozens of consumer discretionary companies within the MSCI China Index, providing investors an efficient vehicle to express a sector view on China. All Share Exposure – The Index incorporates all eligible securities as per MSCI’s Global Investable Market Index Methodology, including China A, B and H shares, Red chips, P chips and foreign listings, among others.
Thank you for taking time to read this article. If you found it useful, please share it with a friend.
Respectfully yours, Micah McDonald, aka the Deep Value ETF Accumulator
Previous Deep Value ETF Accumulator article on China Equities ETFs:
4 Best Long Term Performance China Region ETFs 1.4
Disclosure: We currently own shares of CQQQ and intend to buy more shares in the future. I am not a professional investment advisor. Please perform your own due diligence or seek the advice of a Registered Investment Advisor before investing in any security mentioned in this article. This website contains affiliate links to M1 Finance and Google AdSense.