3 China ETFs defying the market rout

As Chinese technology stocks continue to be sold off by investors concerned about the regulatory and economic environment, a handful of China ETFs managed by Global X ETFs have weathered the storm.

Global X ETFs is a New York-headquartered ETFs provider with over $37 billion in assets under management.

Global X MSCI China Energy ETF (NYSEARCA: CHIE)

CHIE aims to provide growth and yield that correspond to the performance of the MSCI China Energy IMI Plus 10/50 Index. The Chinese energy sector has continued to recover strongly since the height of the COVID-19 crisis in 2020.

This ETF has been unaffected by the broader performance of the Hang Seng and Chinese mainland indexes, which has been weighed down by tech stocks.

CHIE’s current top 10 holdings are:

  1. PETROCHINA CO LTD-H
  2. CHINA SHENHUA ENERGY CO-H
  3. SINOPEC CORP-H
  4. SHANXI MEIJIN-A
  5. GUANGHUI ENERGY CO LTD-A
  6. YANZHOU COAL MINING CO-H
  7. Shanxi Coking Coal
  8. SHANXI LU’AN -A
  9. CHINA OILFIELD SERVICES-H
  10. INNER MONGOLIA-B

Year-to-date the CHIE unit price is up 18%

Global X MSCI China Materials ETF (NYSEARCA: CHIM)

CHIM investors have also been relatively shielded from the pain felt by many other Chinese equities investors since March. But it’s no surprise as the ETF only invests in large and mid-capitalization segments of the MSCI China Index that are in the materials sector.

Its current top 10 holdings are:

  1. ZIJIN MINING-H
  2. CONCH CEMENT-H
  3. CHINA NATL BDG-H
  4. GANFENG LITHIUM CO LTD-H
  5. WANHUA CHEMIC-A
  6. CHINA HONGQIAO GROUP LTD
  7. CHINA RESOURCES CEMENT
  8. CHINA MOLYBDENUM CO LTD-H
  9. ALUMINUM CORP-H
  10. NINE DRAGONS PAP

Year-to-date the CHIM unit price is up 14%.

Global X MSCI China Utilities ETF (NYSEARCA: CHIU)

CHIU is another ETF offered by Global X ETFs with no exposure to Chinese big tech and subsequently it has been another strong performer for investors, relative to broader indexes.

This ETF invests in large and mid-capitalization segments of the MSCI China Index that are classified as being in the utilities sector. It aims to track the performance of the MSCI China Utilities 10/50 Index.

Its current top 10 holdings are:

  1. ENN ENERGY HOLDINGS LTD
  2. CHINA LONGYUAN-H
  3. CHINA GAS HOLDINGS LTD
  4. CHINA RES GAS
  5. GUANGDONG INVESTMENT LTD
  6. CHINA RES POWER
  7. CHINA POWER INTERNATIONAL
  8. BJ ENT WATER
  9. KUNLUN ENERGY CO LTD
  10. CHINA YANGTZE-A

Year-to-date the CHIU unit price is up 13%.

These three Global X ETFs are listed on the NYSE Arca.