China-Focused ETFs Have Become 'Political Footballs' In US As Investor Apprehension Leads To Large Scale Shutdown
Portfolio Pulse from Benzinga Neuro
In the first quarter of 2024, a record number of U.S.-listed China-focused ETFs have shut down, with 13 closures reported, surpassing the previous annual records. This trend is attributed to growing investor concerns and political pressures, with both China-focused and ESG ETFs becoming 'political footballs'. Despite this, the assets held by China-focused ETFs have increased to $364 billion. Key ETFs like KWEB, KBA, MCHI, and FXI have outperformed major U.S.-equity ETFs, indicating a potential market shift.

May 13, 2024 | 7:42 am
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POSITIVE IMPACT
iShares China Large-Cap ETF (FXI) has outperformed major U.S.-equity ETFs, highlighting its strong performance and potential for growth amidst market challenges.
FXI's strong performance during a period of significant closures for China-focused ETFs suggests resilience and growth potential, making it attractive to investors.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
KraneShares Bosera MSCI China A 50 Connect Index ETF (KBA) outperformed major U.S.-equity ETFs, indicating its resilience and potential attractiveness to investors.
KBA's performance amidst the downturn for China-focused ETFs highlights its potential for growth and investor interest.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
KraneShares CSI China Internet ETF (KWEB) is highlighted for outperforming major U.S.-equity ETFs, indicating strong performance amidst a challenging environment for China-focused ETFs.
KWEB's outperformance in a period of record closures for China-focused ETFs suggests resilience and potential for growth, attracting investor interest.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
iShares MSCI China ETF (MCHI) is noted for its strong performance against major U.S.-equity ETFs, suggesting a positive outlook despite broader market challenges.
MCHI's outperformance in a challenging market for China-focused ETFs indicates its resilience and potential for investor interest.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90