Helaine Kang

ETF analysis: how passive investors can buy China

Despite some recent signs of slowing down amid the ongoing trade war with the US, China remains among the fastest-growing emerging markets. The economy has been posting high single-digit GDP growth over the past two decades thanks to rising domestic consumption and infrastructure investment.

China has become a mainstream investment in many portfolios, and this is only likely to increase in coming years. Exchange traded funds (ETFs) offer investors easy access to the Chinese growth story, but navigating the country’s equity market is not straightforward.

ETF ideas to profit from fast-growing economies

Against the backdrop of lofty valuations for many developed equity markets – the US in particular – the investment proposition of emerging markets has been gaining traction recently. Whether as a satellite holding to increase geographical diversification or as a core element driving an investment portfolio’s growth, the rationale for investing in emerging markets remains solid: to benefit from these countries’ higher economic growth potential.