Small Dominates Big in China’s Stimulus-Driven Stock ETF Rally
This article is for subscribers only.
Smaller is better right now when it comes to U.S. exchange-traded funds investing in China’s booming stock market.
Two ETFs that buy mainland-traded Chinese equities and have assets of less than $45 million have outperformed almost 1,500 U.S.-listed funds this year. The Market Vectors China AMC SME-ChiNext ETF, which focuses on technology and software companies, has surged 49 percent. The Deutsche X-trackers Harvest CSI 500 China-A Shares Small Cap ETF has gained 37 percent.