Not surprisingly, GXC has been on a roll since the June 24 lows. More recently, this emerging-market ETF rose above its 200-day trend line, suggesting that a long-term uptrend may be in its earliest stages.
The month-over-month comparison with U.S. equities is worth a look as well. The seemingly unstoppable momentum that the S&P 500 SPDR Trust (SPY) boasted through July appears to be stalling.
In contrast, the previously moribund GXC is riding a wave. Could we be looking at a meaningful rotation out of pricier developed-market ETFs into cheaper China ETFs? Does the pickup in Chinese demand bode well for resources-related ETFs? Does the directionality of future stimulus as well as future economic progress hold more sway than "absolute" data? If so, could China-related investments continue to out-hustle the U.S. in the months ahead?
|Month-Over-Month Improvements For China ETFs And Resources-Related ETFs|
|1 Month %|
|Market Vectors Gold Miners (GDX)||11.9%|
|Market Vectors Steel (SLX)||11.0%|
|SPDR S&P China (GXC)||8.8%|
|iShares FTSE China 25 (FXI)||8.7%|
|iShares MSCI Peru (EPU)||8.0%|
|iShares MSCI China (MCHI)||7.5%|
|SPDR Metals and Mining (XME)||6.6%|
|Market Vectors Coal (KOL)||5.9%|
|S&P 500 SPDR Trust (SPY)||0.9%|