China Consumer ETF
This China Consumer ETF is packed with Chinese companies that deliver goods and services to consumers. In the long run this consumer may be a very successful one. China is growing in an unprecedented way. This growth is providing higher incomes and larger spending power to the numerous consumers in China.
Another factor is the Chinese government (always important to follow the guidelines they outline), they have stipulated that their objective is a country which is less dependent upon exports and more orientated towards domestic consumption.
If there is one country in the world where government policies do have an impact on day-to-day life then it will be China, so we must take these directives seriously. Of course this is all music to the ears of the consumer goods industry.
But this party is not without risks. It will not be a simple switch to pull in order to make the transition from an export orientated economy towards a domestic economy. This process will take many years in which some drawbacks will be inevitable.
But these drawbacks will be entry points in my book as I am 100% sure that eventually the Chinese will pull this transition off.
Global X China Consumer ETF
This Global X China Consumer ETF is tracking the Solactive China Consumer Total return Index in which some 40 stocks of Chinese consumer goods companies are included.
Talking about these companies you may think of airlines, retail companies, car manufacturers, online companies like Alibaba and manufacturers of luxury consumer goods.
The most weighed company is China Resources with a share of 7%. Byd Company is good for a 6% share and Hengan Intl Group comes in third with a 5% share.
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Global X China Consumer ETF info:
ETF provider: Global X
Exchange: NYSE Arca