Chindia Equity

Chindia equity mutual funds and ETFs own securities listed on the stock... Chindia equity mutual funds and ETFs own securities listed on the stock exchanges of China and India, sometimes referred to collectively as Chindia. China and India are the two largest countries by population, and at the heart of the so-called BRIC nations (Brazil, Russia, India, China). They can be actively or passively managed, and may, depending on their mandate, focus more on one of the two countries. They may also leave currency exposure unhedged, or choose to protect the portfolio from currency swings. Investors are attracted to Chindia investments because of the potential for these two giant emerging market economies to grow rapidly. Both China and India are at earlier stages of economic development than developed economies (such as the U.S.), and therefore many investors believe their growth potential is higher than more mature economies. Currently, Chindia accounts for over 50% of Asian GDP and it is expected that over the next few decades these two countries will contribute to a significant amount of global GDP. Chindia equity mutual funds and ETFs tend to have significant exposure to the consumer cyclical, financial services, materials and communication services sectors. As a result, they may be appropriate for more aggressive investors willing to take on higher risk in search of better returns than developed market stocks. Last Updated: 11/04/2024 View more View less

Chindia equity mutual funds and ETFs own securities listed on the stock exchanges of China and India, sometimes referred to collectively as Chindia. China and India are the two largest countries by population,... Chindia equity mutual funds and ETFs own securities listed on the stock exchanges of China and India, sometimes referred to collectively as Chindia. China and India are the two largest countries by population, and at the heart of the so-called BRIC nations (Brazil, Russia, India, China). They can be actively or passively managed, and may, depending on their mandate, focus more on one of the two countries. They may also leave currency exposure unhedged, or choose to protect the portfolio from currency swings. Investors are attracted to Chindia investments because of the potential for these two giant emerging market economies to grow rapidly. Both China and India are at earlier stages of economic development than developed economies (such as the U.S.), and therefore many investors believe their growth potential is higher than more mature economies. Currently, Chindia accounts for over 50% of Asian GDP and it is expected that over the next few decades these two countries will contribute to a significant amount of global GDP. Chindia equity mutual funds and ETFs tend to have significant exposure to the consumer cyclical, financial services, materials and communication services sectors. As a result, they may be appropriate for more aggressive investors willing to take on higher risk in search of better returns than developed market stocks. Last Updated: 11/04/2024 View more View less