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Does MM like China exposure today?

Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

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Question asked

Does MM like China exposure today?

Hi James and MM team, Always great insights and opinions and thank you for that. I’m curious to hear your thoughts on China facing stocks after a significant pull back. In particular an ETF I’ve been following which is IZZ? It looks cheap historically and being in a underlying growth market should provide value over the next few years. I look forward to hearing your thoughts. Cheers Chris

Answer

Hi Chris,

After halving over the last 12-months the iShares Large-Cap China ETF (IZZ) is certainly worth consideration, we believe the underlying index is solid value even after bouncing this week but it does remain at the mercy of Xi Jinping & his minions. Hence while we like Chinese equities  after the painful decline we would leave some $$ on the side-lines to average into any further news driven sharp dips in the index.

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iShares China Large-Cap ETF (IZZ)
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