China Accounts For 'Nearly Half Of Asia-Pacific GDP' While India Is A 'Bright Spot,' Economist Says: Key ETFs To Watch

Author: Surbhi Jain | April 11, 2024 11:22am

As global economic dynamics shift, investors are eyeing China and India with renewed interest. The Asian Development Bank‘s (ADB) bullish outlook positions China as a key growth engine despite a slight slowdown.

China: Despite a moderate slowdown, China remains a dominant force in global growth. ADB's chief economist Albert Park says: "China is obviously going to still be important for some time to come. They still account for nearly half of GDP in Asia Pacific," said

India: India’s stellar growth outlook positions it as a rising star in the region, with ADB forecasting robust economic expansion in the coming years. India’s impressive economic trajectory underscores its rising importance. "India's importance to growth in the region is increasing," Park said, according to CNBC. However, while India's economy is undoubtedly a "bright spot," it is still smaller than China's.

Also Read: U.S. Overtakes China As Taiwan’s Biggest Export Market For The First Time In Over 20 Years

China ETFs: Riding the Wave of Economic Resilience

ETFs offer investors a convenient and diversified way to capitalize on the growth potential of both China and India, providing exposure to key sectors and market segments. Here are some ETFs, investors should be watching:

• KraneShares CSI China Internet ETF (NYSE:KWEB): With an AUM of $5.5 billion, this ETF seeks to capitalize on China’s booming internet sector. Investors may consider it for sustained growth amidst economic fluctuations.
• iShares MSCI China ETF (NYSE:MCHI): This ETF allows investors to gain exposure to a diverse range of Chinese companies across sectors, benefiting from the country’s robust economic fundamentals. The MCHI has an AUM of over $4.8 billion.
• iShares China Large-Cap ETF (NYSE:FXI): With $4.5 billion in AUM, the FXI ETF invests into China’s largest and most influential companies, offering stability and growth potential in a dynamic market landscape.

India ETFs: Unveiling the Potential of a Rising Powerhouse

• iShares MSCI India ETF (NYSE:INDA): With an AUM of over $9.5 billion, this ETF seeks to harness the potential of India’s thriving market, fueled by strong economic fundamentals and a burgeoning tech sector.
• WisdomTree India Earnings Fund (NYSE:EPI): This ETF provides access to India’s corporate earnings growth story, offering exposure to a wide array of sectors driving the country’s economic resurgence. EPI has an AUM of over $2.96 billion.

Compare China-focused MCHI with India-focused INDA for more perspective into the current financial metrics:

INDA Vs. MCHI

	INDA	MCHI
Name	iShares MSCI India ETF	iShares MSCI China ETF
Index	MSCI India Index	MSCI China
Expense Ratio	0.65%	0.59%
Inception Date	2012-02-02	2011-03-29
AUM	$9.53B	$4.9B
YTD Return	6.99%	-1.25%
1 Year Return	30.56%	-16.05%
3 Year Return	10.14%	-19.24%
Beta	0.68	0.49
P/E Ratio	21.83	10.89

As investors seek to capitalize on the shifting economic landscape, China and India ETFs emerge as compelling investment opportunities, offering access to two of the world’s most dynamic and promising markets.

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Image: Shutterstock

Posted In: EPI FXI INDA KWEB MCHI