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This exchange-traded fund focuses on China's consumer staples and stands to profit from a growing Chinese economy.

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This Fund Tracks China??s Consumer Staples

This exchange-traded fund focuses on China’s consumer staples and stands to profit from a growing Chinese economy.

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.

To read the rest of this article, click here.

Written By

Doug Fabian is the editor of Successful Investing and High Monthly Income, and is the host of the syndicated radio show, "Doug Fabian's Wealth Strategies." Taking over the reigns from his dad, Dick Fabian, back in 1992, Doug has continued to uphold the reputation of the newsletter as the #1 risk-adjusted market timer as ranked by Hulbert??s Investment Digest. For more than 30 years, Successful Investing (formerly the Telephone Switch Newsletter) has produced double-digit annual gains. Doug has become known for his expert knowledge and timely use of innovative tools like Exchange Traded Funds, bear funds and Enhanced Index funds to profit in any market climate.

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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.

To read the rest of this article, click here.

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