ETF Expert

Wireless network operator, China Mobile, is at a 3-month peak. Oil explorer, Cnooc, has reached a seven-month pinnacle. And SPDR S&P China (GXC) is up as much as 38% since hitting perilous depths in October.

Is the world’s second largest economy back on the track? Yes and no. While GDP growth estimates of 7% haven’t been this low since 2004, Chinese authorities have been hinting at more monetary easing. This past week, in fact, the People’s Bank of China said that it may cut bank reserve requirements three more times in the first half of 2012 alone. Its first such cut happened this past December.

And there’s more. If the U.S. economy is indeed accelerating, or at the very least… holding its own… increased world demand for goods would benefit Chinese corporations.

Investors may choose to play the trend with a direct allocation to Chinese equities via SPDR S&P China (GXC). Another possibility? Consider the upside potential for the growing middle class in China via Global X China Consumer (CHIQ). 

China ETF Rises To One-Week High On Easing Prospects: China Overnight– Belinda Cao, Bloomberg
Utilities ETFs Selling At A Discount– Niklashausen, Seeking Alpha
Total Return: Why Dividends Matter For ETFs – Tom Lydon, ETF Trends
Capital Markets ETFs For 2012?– Neena Mishra, Zacks
Monitors VIX Futures And Their Impact On VIX ETPs– Bill Luby, VIX And More    

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Disclosure Statement: ETF Expert is a web log (”blog”) that makes the world of ETFs easier to understand. Gary Gordon, MS, CFP is the president of Pacific Park Financial, Inc., a Registered Investment Adviser with the SEC. Gary Gordon, Pacific Park Financial, Inc, and/or its clients may hold positions in the ETFs, mutual funds, and/or any investment asset mentioned above. The commentary does not constitute individualized investment advice. The opinions offered herein are not personalized recommendations to buy, sell or hold securities. At times, issuers of exchange-traded products compensate Pacific Park Financial, Inc. or its subsidiaries for advertising at the ETF Expert web site. ETF Expert content is created independently of any advertising relationships. You may review additional ETF Expert disclosure details here.

Tags | China ETFs, Dividend ETFs, Utilities ETFs, Volatility ETFs