Morningstar Rating

ETF Research and Analysis

by Patricia Oey
SPDR S&P China GXC provides broad, cap-weighted exposure to Chinese equities available to foreign investors and is suitable for use as a satellite holding.
Investing in China can be confusing. Most offshore investors   Read more 

Bull Case

GXC invests in some of the largest Chinese companies with substantial economies of scale.
This fund's expense ratio is one of the cheapest among China-specific ETFs.
The Chinese government is attempting to transition its economy toward a more sustainable growth trajectory--away from capital spending and toward domestic consumption. Read more 

Bear Case

There could be some policy and regulation uncertainty in the near term as the government tries to engineer its economic transition.
The liberalization of interest rates likely will weigh on the margins of the big four banks, which account for about 30% of this fund.
High levels of local government debt, a shadow banking system, and off-balance-sheet bank debt are risks to China's financial system and economy. Read more 

This ETF's Index Is a Victim of Its Own Success 
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