China ETFs - Are They Safe To Buy?
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- Опубліковано 19 жов 2024
- China ETFs | Chinese tech stocks had their worst month since the Global Financial Crisis after investors dumped shares following a regulatory crackdown by Beijing. Likewise, China took a stand on its own education industry, forcing tutoring companies to go non-profit. Property management stocks fell too as Chinese regulators said they wanted to “improve order” in the market.
So the question is... is this an opportunity for investors who want a pie of China's growing economy? Despite the turmoil, there are still investors putting money into China. And investing in Chinese ETFs will provide exposure while offering more diversification than betting on a single company.
In this video, we talk about the risks involved if you're still keen in having some exposure on the Chinese market as well as our favourite ETFs for doing so.
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All the best Kenny! Appreciate all your insightful views and opinions. You will be missed.
Thank you Alex!
Wishing Kenny all the best, thank you for sharing your insight and knowledge all this time. Come back soon, you will be missed.
Thank you Maytha
All the best Kenny, looking forward to see you come back to the show! Cheers!
Thank you Boon Tee !
All the best to you Kenny! :) Enjoy watching your growth here!
Thanks Chuiwhei!
Still can’t believe they record this in Singapore without talking about HST and YYY lol
Anyway, all the best Kenny, thanks for all ur sharing!
Thanks James! Haha yes, we focused on the larger China ETFs in the market.
Boyz I know its not etf related this question but it burns in minds of many and may make a blockbuster of a video to do.. your guys take on talks of chinese EV delisting factors on Nio, Xpeng, BYD, and Li Auto..it d be awesome to see you guys really pick it apart and see what your collective ideas on it may be...keep up the good work i enjoy the content
Thanks Anvar! We'll consider this.
Thanks guys! All the best Kenny!
Thank you Cecilia =)
Thank you so much for the sharing. Love your contents. Look forward every time. All the best Kenny
Thank you Derrick! Glad it has been helpful. ^^
Great Video and Contents as always, thanks very much guys! Good luck with your new venture Kenny, hope you will come back soon.
Thanks Jenny. Glad it's helpful. ^^
Great video & sharing guys. You have summarized all the hard work for us. And all the best to Kenny too.. cheers
Haha. You're welcome! Thanks William!
Kenny, best wishes with your new endeavors
Thank you Mun Keong !
Thanksss for the valuable info ! All d best to your future undertakings Kenny. Stay safe everyone
Thank you, you too! Stay safe =)
Thanks so much always for timely and relevant Information! What do you think about SGX China ETFs? E.g., HST and YYY.
Hi Dawit, HST and YYY are decent options too. If you want a more tech-focused ETF, then HST would be the better pick. HST's stock weighting is slightly different from the iShares Hang Seng TECH ETF (3067), so you may want to have a look at see which composition you prefer. HST's expense ratio is higher at 0.45% as well (compared to 0.25% for 3067). However, if you prefer to trade in SGD, then HST provides that option.
All the best Kenny, and thanks for your insights through the years
Thanks yapgy001!
All the best Kenny! Thank you for all your insights, especially on Alibaba.
Thanks Angeline!
Hey guys, you mentioned that Hang Seng Tech ETF is domiciled in Hong Kong, which means that you won't pay tax on dividends; looking at their fact sheet, it looks like they don't pay dividends as they're re-invested back into the fund. Please can you clarify? Also, when you said it's HK-listed rather than ADRs, please can you explain why this is important? Does it not pose greater geopolitical risk to having your assets frozen? Thanks for reading, Patrick
According to the prospectus, the iShares Hang Seng TECH ETF pays out its distributions in Hong Kong dollars: www.blackrock.com/hk/en/literature/prospectus/20210730-ishares-hsi-and-hst-etf-prospectus-hk-en.pdf
A Chinese stock listed on the HKEX doesn't face the same delisting risk it would being listed on a U.S. exchange. Hope this explains!
All the best Kenny! Yes, I am also interested to know about the China ETFs in Singapore?
HST and YYY are decent options too. If you want a more tech-focused ETF, then HST would be the better pick. HST's stock weighting is slightly different from the iShares Hang Seng TECH ETF (3067), so you may want to have a look at see which composition you prefer. HST's expense ratio is higher at 0.45% as well (compared to 0.25% for 3067). However, if you prefer to trade in SGD, then HST provides that option.
All the best Kenny. Still hope to see you during the meetups after COVID finally ends
Thanks Ming Jie!
All the best, Kenny. What do you guys think of the "lion-ospl china leaders etf"?
Lion-OCBC China Leaders ETF is an alternative to the iShares MSCI China ETF. It is a much smaller fund and the volume is much lower too. However, you avoid the U.S. withholding tax and it trades in SGD if you prefer that.
Able to share your views on the Lion-OCBC Securities China Leaders ETF (YYY) and HANG SENG TECH ETF (HST) that are listed in Singapore?
Hi Ben, HST and YYY are decent options too. If you want a more tech-focused ETF, then HST would be the better pick. HST's stock weighting is slightly different from the iShares Hang Seng TECH ETF (3067), so you may want to have a look at see which composition you prefer. HST's expense ratio is higher at 0.45% as well (compared to 0.25% for 3067). However, if you prefer to trade in SGD, then HST provides that option.
All the best Kenny!
Thank you Yiin Yew !
@@TheFifthPersonChannel Sheih Yiin is my name, Yew is surname. :)
Apologies! Sheih Yiin it is! 😅
Kenny must be super rich, after being corrected 2:10 he still say 100 lots. Respect sir.
Freudian slip... 😂
All the best Kenny!! Is there a specific sectors you guys will invest in? For instance, the semiconductor industry
Hi Alven, in general, we like wide moat companies with decent long-term growth. We do look at certain companies in the semiconductor industry as well.
Thank you Fifth person. Thank you Kenny.
Victor mention ADR (US) can be converted to HK shares. How do u do that? Thanks
Hi Ed, this article will help explain: www.scmp.com/business/companies/article/3039859/explainer-what-fungibility-and-whats-big-deal-alibabas-fungible
Hi for a 21 min video the main topic only started from 11:50. Also when u introduce the ETFs can show us the diagrams with the name and counter and the constituents? U did for some but not all. Eg u just mentioned Krane shares but which ETF is that? Will be clearer if you showed the diagrams u r looking at on the laptops than just hearing if not it might well be a podcast. Thanks
Thanks for the feedback! We're referring to the KraneShares CSI China Internet ETF. Hope this helps!
@@TheFifthPersonChannel thanks. Look forward to more videos
Hello gents. Love the podcast.
As a UK resident and citizen, can I invest in china ETFs using the vanguard or freetrade patforms ?
Thanks Tamas! Yes, as long as the China ETF is listed on an exchange that Vanguard and Freetrade have access to. If the ETF is domiciled in the U.S., UK residents face a 15% withholding tax on dividends. Because of this, you may prefer to choose a China ETF that's domiciled in Hong Kong which has zero withholding tax. Hope this helps!
Thank you for your sharing. One question regarding to expense ratio, how do we pay for that when we purchase the ETF? do our number of ETF purchased will go down to pay for the expenses? Last note, all the best, Kenny!
Thanks Rocky! This article will help explain: www.investopedia.com/ask/answers/071816/how-are-etf-fees-deducted.asp
From South Park 'You killed Kenny, you BXXstards!'
ROFL 🤣
Many thanks for the insights for China ETF. Is it a good strategy for the long run to buy HKD based China ETF instead of USD China ETF? Thanks
Yes, we prefer Hong Kong-domiciled ETFs to avoid the U.S. estate and dividend withholding tax.
Hi , thank for the video, how about the CQQQ ?
CQQQ does not include Alibaba though
Hi just wondering why you chose talk about iShares Hang Seng Tech ETF instead of Lion Philips Hang Seng Tech ETF? Both ETFs are trying to replicate the Hang Seng Tech index, but since the latter is listed locally it would save u FX cost.
Hi Kent, the expense ratio for the iShares Hang Seng Tech ETF is lower at 0.25%, compared to 0.45% for the Lion Philips Hang Seng Tech ETF.
@@TheFifthPersonChannel how about forex risk as (SGD is becoming stronger, low inflation ) in comparison to HST extra 0.2% fee? This will help us to decide on which ETF denomination.
The underlying stocks are Chinese/Hong Kong companies; you can't avoid the forex risk. In any case, the Hong Kong dollar is pegged to the USD and is relatively stable.
Good information sharing
Thanks
Thanks Kheng Boon!
What about Lion Global Hang Seng Tech ETF and China Leaders ETF
Yes, you can consider them too but their expense ratio (0.45% p.a.) is higher than the iShares Hang Seng TECH ETF (0.25% p.a.).
Dear all
I am investing in ETF right now, I am worry about Bit and Ask volume, when I have many ETF volume in my portfolio and I want to sell them.
Thanks
Hi Boongui, if an ETF is well traded, the bid-ask spread will be minimal.
Wonderful video...i willing to take risk..which etf can make more profit for long term..Any suggestion guys
Thanks! We can't predict what investment will make more profit in the future. Instead, you need to ask yourself:
1) Which ETF (and its composition of stocks) makes more sense in the long term for you?
2) Do you believe strongly in the overall growth of China?
3) Do you prefer a more concentrated investment in its tech sector because there is more potential for growth in that area?
4) What are your investment goals, risk profile, and time horizon? Does the investment fit your portfolio?
Hope this helps!
@@TheFifthPersonChannel yess...i believe in China...it will became stronger tham USA...Any ETF will fine for me...long term
3067's TER is much higher than 0.25%. That's only the management fee.
Hi Chek Seng, the expense ratio is 0.25%.
www.morningstar.com/etfs/xhkg/3067/quote
www.etfstrategy.com/blackrock-undercuts-hong-kong-rivals-with-low-cost-hang-seng-tech-index-etf-ishares-hang-seng-tech-etf-hkex-hkd-3067-hk-and-usd-9067-hk-37485/
Hi. What about the CQQQ?
HI Thomas, the CQQQ excludes Alibaba. If we had to pick a China ETF, we'd want Alibaba in it.
nice editing :D
Thanks! 😁
THANKS KENNY!! Who will be the 4th person!
Baby Yoda for now 😄
All the best Kenny! Hi Fifth Person. Can I know how does an individual ETF investor pay for the Expense Ratio? Will the shares of the ETF they hold be sold off to pay for the expense thus causing a reduction in the amount of shares held by the investor? Thank you
Hi Eugene, this article will help explain: www.investopedia.com/ask/answers/071816/how-are-etf-fees-deducted.asp
What is the difference between ETF and unit Trust .
Hi Charissa, this will help explain: www.investopedia.com/articles/exchangetradedfunds/08/etf-mutual-fund-difference.asp
What is your team's view on mutual funds tracking China A/CSI300 ? Are they more preferred over ETFs ?
In general, we prefer ETFs due to their lower fees and ease of buying/selling.
Best wishes kenny
Thank you Hazman!
now i know why Kenny & Rusmin swapped seat!
Thanks guys for this episode. I was looking for China ETF one day before this video release... Just in time for me haha.. Must say u guys have the best videos... Informative and up to date on what's happening in market... Good job. Kenny, all the best for ur future endeavours..
great video! may i know how can i join the WA group or any telegram group?
Hi Royston, you can join our telegram here: t.me/thefifthperson. It's meant for one-way notifications whenever we release new videos and articles 😊
Hi, thank you so much for your total coverage on this subject! Since iShare MSCI China ETF (MCHI) is listed in US Stock Exchange, meaning it will incur 15% withholding tax for non-US investor? Is iShare Core MSCI China ETF (2801/9801) the equivalent of MCHI but without the withholding tax since it is domiciled in HK Storage Exchange?
The MCHI is domiciled in the U.S. will incur a 30% withholding tax for foreign investors. Not only that, the ETF is also charged a 10% withholding tax on dividends on the Chinese side. Yes, the 2801/9801 is similar but domiciled in Hong Kong and, therefore, have no withholding tax.
Bit off topic but can you guys talk about a company called pltr palantir - it’s pumped to come as huge model in big data thanks.
Will the fifth person become the forth person?
Baby Yoda is the fourth person for now 😂
How about CQQQ ETF
CQQQ does not include Alibaba though
@@TheFifthPersonChannel Yes, But I have already invested in CQQQ, and I want to know, I am going to DCA. It's good or bad.
We can't tell you if an investment is 'good' or 'bad'. The questions to ask yourself are:
1. What is your risk profile?
2. What are your investment goals?
3. Does an investment (assuming it passes the fundamental criteria) fit your risk profile and investment goals?
Does CQQQ fit your portfolio?
Thanks
Hi
Do you guys think that the Chinese tech stocks going to keep falling? Let me know your thoughts.
Hi Rui, we can't predict where prices will go, especially in the short term. As investors, we simply take a stake in a company when the current price provides reasonable value to us.
I always watch your videos at 2x speed; it makes all your random laughs even funnier. Not sure if it will still be same without kenny!🥲 all the best Kenny!
Hahahaha!! 🤣
All the best Kenny!
Thank you LW!