3 Promising China ETFs to trade the next 24 hours The Tell
Post on: 26 Апрель, 2015 No Comment
With China’s big data dump grabbing headlines at week’s end, investors might be looking for ways to invest in the world’s No. 2 economy.
Yes, the biggest China ETF, the iShares China Large-Cap ETF /quotes/zigman/357940 /quotes/nls/fxi FXI. has slumped 15% in 2013 to date and remains well off its all-time peak. But strategists like iShares Russ Koesterich have suggested China could now be seen as a promising value play .
When you view Chinese stocks from the value perspective, they look cheap relative to other emerging markets and the broader market, he wrote in a recent note.
Beyond FXI, investors should consider the China SPDR /quotes/zigman/478423 /quotes/nls/gxc GXC .
With exposure to more than 200 Chinese companies, its more diversified than FXI, which just holds 25 companies and has more exposure to financials. That helps make GXC Morningstars favorite ETF, as the Wall Street Journal noted in a recent column. GXC is down 7% in 2013 to date, but up 6% over the past 12 months.
Or if you really want to get away from financials, perhaps because youre worried about a big bank conspiracy. research the WisdomTree China Dividend Ex-Financials Fund /quotes/zigman/11875555 /quotes/nls/chxf CHXF. which is down 13% so far this year. This ETF, not quite a year old, is relatively heavy on energy companies, as an ETF Trends article pointed out earlier this week .
An idea for growth-minded investors is the PowerShares Golden Dragon China ETF /quotes/zigman/362999 /quotes/nls/pgj PGJ. Its up 30% so far this year, helped by its exposure to Chinese tech and consumer names. IndexUniverse has argued that PGJs holdings line up well with the stated policy of China to de-emphasize credit and investment and instead start leaning on consumers and technology.
The Chinese data out overnight will include fresh readings on inflation, retail sales and industrial production. On Thursday, Chinese trade data surpassed expectations, although keep in mind the trade numbers often draw especially strong doubt from foreign analysts.
Here are a couple of other points for the next 24 hours in the financial markets:
The online travel broker was recommended by J.P. Morgan analysts two weeks ago for investors who want to bet on a recovery in Europe.
The company posted a profit, surprising analysts who had forecasts quarterly losses for the second quarter and at least through 2014s third quarter, according to FactSet data. Tableau came public in May. pricing at $31 a share, and it had roughly doubled from that price as of Thursdays close. Its viewed as benefiting from the Big Data trend, as noted in this MarketWatch slideshow based on a Goldman Sachs note titled The Search for Creative Destruction.
2) WhiteWave reports: The earnings calendar is light on Friday, but WhiteWave Foods /quotes/zigman/12497873 /quotes/nls/wwav WWAV will report its results. Analysts expect EPS of 16 cents on revenue of $608 million.
The maker of Silk soy milk and Horizon Organic products is getting a lift from growing interest in natural and organic foods. Analysts also have said the Dean Foods /quotes/zigman/290351 /quotes/nls/df DF spinoff could be a takeover target, as companies like General Mills /quotes/zigman/227548 /quotes/nls/gis GIS might want more exposure to the natural foods trend.
For a discussion of these points, check out the video above.
Victor Reklaitis
Follow Vic on Twitter @vicrek