The 3 worst China ETFs

In 2023, the Chinese market has found itself in a phase of significant challenge, and this has had a direct impact on the returns of ETFs tracking the Chinese market.
In this article, we will examine in detail the three ETFs which, in a context of a declining Chinese market, can be considered the worst financial instruments for investing in China.
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Global X China Clean Energy Acc The Global China and Hong Kong.
The ETF tracks the Solactive China Clean Energy Index, which includes companies involved in developing and implementing clean energy solutions in the region.
However, before considering this ETF as an investment choice, it is essential to analyze its details.
The assets under management are rather small, which could lead to liquidity problems and a greater spread between purchase and sale prices.
Additionally, the ETF's annual total expense ratio (TER) of 0.68% represents a significant cost to investors, reducing their potential long-term returns.
Returns overview: – YTD: -35.40% – 1 month: +1.56% – 3 months: -10.88% – 6 months: -24.12% – 1 year: -34.77% The performance The ETF's negative performance in 2023 raises concerns about its ability to generate adequate returns for investors, but it is important to highlight that these difficulties are a direct reflection of unfavorable market conditions in China's renewable energy industry.
also read ETFs that beat the S&P 500 in 2023 2.
Global This ETF tracks the Solactive China Electric Vehicle and Battery Index, which includes Chinese companies active in the production and development of electric vehicles and battery technologies.
At a time when electric vehicle sales in China have slowed significantly in 2023 due to semiconductor supply issues and pandemic-related challenges, this ETF has also suffered.
Like the previous one, it has a very small fund size.
This aspect could lead to liquidity problems and a greater spread between the purchase and sale price.
Additionally, the annual total expense ratio (TER) of 0.68% places an additional burden on investors, reducing potential returns.
Returns overview: – YTD: -35.10% – 1 month: -1.14% – 3 months: -10.85% – 6 months: -20.66% – 1 year: -35.60% The performance ETF's negative performance in 2023 is in line with the challenging Chinese automotive market environment, further highlighting the challenges investors face in this sector.
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Invesco MSCI China Technology All Shares Stock Connect This ETF was launched on June 11, 2021 and is focused on the Chinese technology sector.
It tracks the MSCI China Technology All Shares Stock Connect Select Index, which includes Chinese companies active in technological innovation and the development of products and services based on advanced technologies.
While the lower annual TER of 0.49% may seem like an advantage compared to other ETFs reviewed, the fund's negative performance in 2023 cannot be ignored.
The size of the fund, although slightly larger, is still only 29 million euros.
Returns overview: – YTD: -21.87% – 1 month: -2.02% – 3 months: -9.40% – 6 months: -13.78% – 1 year: -22.13% In a As China's technology sector has undergone a series of challenges, including stricter regulations and pressure on profit margins, the ETF has shown disappointing performance.
The 1-year volatility is 22.89%, further highlighting the fund's instability.
Bottom line, these three China ETFs have proven to be disappointing investments in 2023, and much of this is directly related to the challenging market conditions China is facing in the renewable energy, electric vehicle, and technology sectors.
Investors should carefully consider the risks associated with such products and evaluate more robust alternatives to gain exposure to the Chinese market.
Diversification and research are key to investment success, especially in a negative market environment like the current one in China.
read also This global bond ETF should absolutely be avoided Disclaimer The information and considerations contained in this article should not be used as the sole and main support on which to make investment decisions.
The reader retains full freedom in his own investment choices and full responsibility in making them, since he alone knows his risk appetite and his time horizon.
The information contained in the article is provided for informational purposes only and its disclosure does not constitute and should not be considered an offer or solicitation for public savings.