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Investing in China has not always been so attractive. The year 2018 was remarkably bad for Chinese equities, with a 25% decline in the Shanghai stock exchange.
Now, things seem to be improving. The trade hit a 52-week high on Monday and is now among the best-performing indexes in the world, up more than 30% this year.
And with regard to the ETF space, experts see an opportunity to seize.
"It's obvious that this is becoming an increasingly important part of the global economy, so you should have more," said John Davi, founder and chief investment officer at Astoria Portfolio Advisors, on Monday. Edge "of CNBC.
"My positive point of view is that China is trading at 12 times its profits." S & P [500] is, for example, 17 times the profits, "he said. And if you look at earnings growth, you've tripled the amount of earnings growth for [the iShares MSCI China ETF, or MCHI] compared to the S & P 500. So, risk-reward, you have a margin of safety when you buy in China. This is therefore our largest overweight in our portfolios. We love emerging markets. "
Yet even with the "valuation haircut", China's economic stimulus plans and its lower interest rates, it is not prudent to be too optimistic towards the China for now, said Todd Rosenbluth of CFRA in the same interview.
Rosenbluth, director of ETF and mutual fund research at CFRA, said the macroeconomic situation still represents "a big part" of investment in China, especially with the US-China trade dispute unresolved.
"You can … go against that and use more single-country ETFs, iShares, Franklin or other existing providers, to underweight China in the portfolio," he said. declared.
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