ETF investors are reassessing their portfolios for a 2021 rebound given what the rough experiences in a very forgettable 2020. As China continues to stabilize, one strong option is the Xtrackers MSCI China A Inclusion Equity ETF (ASHX ).
ASHX seeks investment results that correspond generally to the performance, before fees and expenses, of the MSCI China A Inclusion Index. The fund will normally invest at least 80% of its total assets in securities (including depositary receipts in respect of such securities) of issuers that comprise the underlying index.
The underlying index is designed to track the equity market performance of China A-Shares that are accessible through the Shanghai-Hong Kong Stock Connect program or the Shenzhen-Hong Kong Stock Connect program. The fund has a next expense ratio of 0.60%, but with that, investors get a fund that’s been performing at a stellar rate, with a year-to-date gain of almost 33% based on Morningstar numbers.
Looking at the chart below, ASHX has gone above and beyond its pre-pandemic sell-off levels back in March:
Per a South China Morning Post article, “Premier Li Keqiang on Wednesday acknowledged the ‘great pressure’ facing China’s economy, both at home and in a turbulent environment abroad, but vowed the government would do all it could to drive stable and sustainable development. China’s economy, both at home and in a turbulent environment abroad, but vowed the government would do all it could to drive stable and sustainable development.”
“Under the complex and volatile international economic and political conditions, for a large economy like ours … stability means progress,” Li told the People’s Daily, according to the SCMP article.
“China’s economy has bounced back from the impact of the coronavirus pandemic early this year, expanding by, compared with a year earlier,” the article added. “But it faces external uncertainty due to a growing rivalry with the US and the effect of the coronavirus that is still raging across much of the world. Though Li said China’s economy would return to growth this year and surpass 100 trillion yuan (US$15.2 trillion), he wrote it was ‘very difficult to keep the economy running smoothly.’”
“Insufficient demand restricts the stable recovery of the economy,” he said. “Enterprises, especially small, medium and micro enterprises are having difficulties in production and operation.”
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