ETF Talk

This Fund Tracks China’s Consumer Staples

With the highest population of any country, China has a huge consumer base. The Global X China Consumer Exchange-Traded Fund (ETF) (CHIQ) aims to take advantage of that by investing in a basket of stocks that are focused on the consumer discretionary and consumer staples sectors in China.

The fund invests the majority of its $66.12 million total assets in companies domiciled in or with their main business operations in China. Only securities which are tradable for foreign investors without restrictions are eligible. CHIQ has a dividend yield of 1.52% and makes annual distributions. The fund has an expense ratio of 0.65%.

While CHIQ holds far fewer names than a typical China consumer-based fund, it captures both consumer cyclical and non-cyclical sectors. CHIQ opts to go lighter in retailers and automobiles manufacturers and invests heavily in food, tobacco and beverage sectors. It does not have a high daily trading volume for an ETF in general, but its efficient access to the consumer sector makes it one of the most popular sector-specific China ETFs on the market.

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