Investors Continue To Be Bullish On Chinese ETF’s

chinaInvestors just can’t get enough of China’s recovery and growth.  Jim Oberweis, editor of the Oberweis report and Peter Navarro, author and business professor at the University of California at Irvine gave their take to CNBC on Wednesday.

“A good and easier way to play China is the (FXI), and exchange traded fund that’s like the Dow here in the US. It’s near its 52 week high now,” said Navarro. Another way, said Navarro is the ETF Wisdom Tree Dreyfus China Yuan (CYB). Navarro said that’s because the yuan will probably have to de-couple from the dollar.

See the CNBC video below:


Here’s a look at the two ETF’s mentioned below:

The investment (FXI) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the FTSE/Xinhua China 25 index. The fund generally invests at least 90% of assets in securities of the Underlying index and in depositary receipts representing securities of the Underlying index. The Underlying index consists of 25 of the largest and most liquid Chinese companies. It may invest the remainder of assets in securities not included in its Underlying index but which BGFA believes will help the fund track the Underlying index. The fund is nondiversified.

TOP 10 HOLDINGS ( 61.70% OF TOTAL ASSETS)  
 
Company Symbol % Assets
Bank of China Ltd N/A 6.44
Bank Of Communications Co., Ltd. N/A 4.06
BOC HONG KONG (2388.HK) 4.53
China Construction Bank Corporation N/A 9.07
China Life Insurance Company, Ltd. N/A 8.25
China Mobile Ltd. N/A 9.33
China Shenhua Energy Company Limited N/A 4.64
CNOOC, Ltd. N/A 4.04
Industrial & Commercial Bank of China N/A 7.35
PetroChina Company, Ltd. N/A 3.99

The investment (CYB) seeks to achieve total returns reflective of both money market rates in China available to foreign investors and changes in value of the Chinese Yuan relative to the U.S. dollar. The fund normally invests in a combination of U.S. money market securities with forward currency contracts and currency swaps which is designed to create a position economically similar to a money market security denominated in Chinese Yuan. The average portfolio maturity is 90 days or less. It does not purchase any money market securities with a remaining maturity of more than 397 calendar days. The fund is nondiversified.

TOP 10 HOLDINGS ( 19.98% OF TOTAL ASSETS)  
 
Company Symbol % Assets
FHLMC FRN N/A 2.57
FNMA N/A 2.7
FNMA N/A 2.53
FNMA N/A 2.43
FNMA N/A 1.97
FNMA N/A 1.64
FNMA N/A 1.51
Goldman Sachs Flt Fdic N/A 1.98
Jpmorgan Chase & Co Fdic Tlgp FRN N/A 1.32
MORGAN STANLEY FDIC GTD TLGP N/A 1.33

Chart for WisdomTree Dreyfus Chinese Yuan (CYB)

 

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