An ETF exclusively holding U.S.-listed shares of Chinese companies has the biggest upside potential at nearly 40%.
Chinese stock markets have failed to perform in 2023. Take, for instance, the Shenzhen Component , Shanghai Composite , or the more accessible Hang Seng Index . All three major indexes have lost money for investors over the past week, month, three months, six months, and year. Only patient investors who entered the market four or five years ago would be in the black.
Pro of FactSet's ETF performance data. "Shorting" allows investors to profit when the value of a stock, bond, or currency declines. Pro screened for global China-focused ETFs that have posted positive returns this year to date. You can see the 10 results in the table below. All of the funds are readily accessible to Western investors via exchanges in New York, London, Amsterdam, Frankfurt, and Singapore. Currency The WisdomTree Short CNY Long USD ETF , traded on the London Stock Exchange and Germany's Xetra, is up the most at 9.6% this year.
line Meanwhile, the Invesco Golden Dragon China ETF is up 1.8% this year and has the biggest upside potential at 39.2%, according to the weighted average of analysts' price targets. The ETF exclusively holds Chinese shares listed in the U.S. These are commonly known as "N-shares", or ADRs of Chinese companies based in mainland China that only trade in the U.S. The fund aims to take advantage of the opportunities in China with the transparency that U.S.