ETFs for Rising Consumption and Manufacturing Activity in China

Indeed, the evidence is pointing to a winning hand for investors in Chinese equities. Not only is GDP finally trending upward, but leaders have more boldly expressed a willingness to employ monetary/fiscal stimulus to support a 7.5% growth rate. (They're likely to see north of 8% without stimulative measures.)

With a variety of benchmark indexes offering forward P/Es of nine to 10, stocks tied to China look better than they have in years.

While there are those who may view exchange-traded favorites like GXC and iShares FTSE China 25 (FXI) as lower risk assets due to their diversification, I tend to favor trading partners in the Asia-Pacific region.

If you're intrigued by the manufacturing angle, iShares MSCI Australia (EWA) beckons as one of China's most important providers of materials. (Also, you shouldn't shake a stick at that 4.1% SEC distribution yield.)

South Korea, as represented by the iShares MSCI South Korea Index (EWY), is another key trading partner with China. Whereas the U.S. and Europe import a staggering amount of goods/services from the mainland, Korea, the fifth largest trading partner, is a net exporter.

For believers in the idea that China is in the process of transitioning to a powerful consumer class, EWY is a solid ETF in the Asian neighborhood.

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This article was written by an independent contributor, separate from TheStreet's regular news coverage.

Disclosure Statement: ETF Expert is a website that makes the world of ETFs easier to understand. Gary Gordon, Pacific Park Financial and/or its clients may hold positions in ETFs, mutual funds and investment assets mentioned. The commentary does not constitute individualized investment advice. The opinions offered are not personalized recommendations to buy, sell or hold securities. At times, issuers of exchange-traded products compensate Pacific Park Financial or its subsidiaries for advertising at the ETF Expert website. ETF Expert content is created independently of any advertising relationships. You may review additional ETF Expert at the site.

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