China Region Equity

China region equity mutual funds and ETFs invest the majority of their... China region equity mutual funds and ETFs invest the majority of their assets in stocks listed on the exchanges of China, Taiwan, and Hong Kong. They can be actively or passively managed, and may, depending on their mandate, focus more on specific countries. They may also leave currency exposure unhedged, or choose to protect the portfolio from currency swings. Investors are attracted to China region funds for their perceived growth potential, much of which is due to the mainland Chinese economy. Mainland China has a population in excess of 1 billion, and an estimated nominal GDP in 2023 of over US$19 trillion. This puts it second in the world, behind the U.S., which has an estimated nominal GDP in 2023 of US$27 trillion. These funds often have significant exposure to the consumer discretionary, information technology, health care, and financial services sectors. China-region mutual funds and ETFs may be appropriate for aggressive investors who are willing to assume more risk in search of higher potential returns. However, these funds are not appropriate for conservative-minded investors who are more concerned with capital preservation. Investments in China, Hong Kong, and Taiwan may have considerable geopolitical risk. In addition, a material slowdown in the Chinese economy can also weigh on investments in these funds. Last Updated: 04/19/2024 View more View less

China region equity mutual funds and ETFs invest the majority of their assets in stocks listed on the exchanges of China, Taiwan, and Hong Kong. They can be actively or passively managed, and... China region equity mutual funds and ETFs invest the majority of their assets in stocks listed on the exchanges of China, Taiwan, and Hong Kong. They can be actively or passively managed, and may, depending on their mandate, focus more on specific countries. They may also leave currency exposure unhedged, or choose to protect the portfolio from currency swings. Investors are attracted to China region funds for their perceived growth potential, much of which is due to the mainland Chinese economy. Mainland China has a population in excess of 1 billion, and an estimated nominal GDP in 2023 of over US$19 trillion. This puts it second in the world, behind the U.S., which has an estimated nominal GDP in 2023 of US$27 trillion. These funds often have significant exposure to the consumer discretionary, information technology, health care, and financial services sectors. China-region mutual funds and ETFs may be appropriate for aggressive investors who are willing to assume more risk in search of higher potential returns. However, these funds are not appropriate for conservative-minded investors who are more concerned with capital preservation. Investments in China, Hong Kong, and Taiwan may have considerable geopolitical risk. In addition, a material slowdown in the Chinese economy can also weigh on investments in these funds. Last Updated: 04/19/2024 View more View less