CHIQ: GLOBAL X MSCI CHINA CONSUMER DISCRETIONARY ETF
ETF Education Report: Global X MSCI China Consumer Discretionary ETF (CHIQ)
What this ETF is trying to do
The Global X MSCI China Consumer Discretionary ETF (CHIQ) is an exchange-traded fund that focuses on companies in China. Specifically, it looks at "consumer discretionary" businesses. These are companies that sell things people choose to buy, like electronics, cars, or travel services.
What the numbers show
The current price of CHIQ is $16.17. To understand how the value has changed, we can look at different timeframes:
• Year-to-Date (YTD): The price return is approximately -23.96%. The total return is approximately -23.51%.
• One Year: The price return was approximately -31.37%. The total return was approximately -30.35%.
• Three Years: The price return was approximately -11.15%. The total return was approximately -4.84%.
It is important to know the difference between these two numbers. The price return only shows how much the share price moved. The total return includes both the price movement and any cash distributions (dividends) paid out.
If you look at an estimated price from roughly one year ago, it was about $23.56. Comparing that to the current price of $16.17 shows a significant decline in the share price.
Income and distribution explanation
This ETF has a distribution yield of approximately 1.76%. This means the fund paid out cash distributions relative to its price. Over the last 12 months, there were 2 payouts. The frequency of these payments is described as irregular or less frequent.
While some investors look for cash income, a high yield alone can be misleading. It does not guarantee that the overall value of your investment will stay the same.
NAV erosion explanation
This ETF has a severe erosion-risk flag. This means that StockValueFinder's rules detected significant price deterioration. The fund has an erosion-risk score of 30, which is labeled as "Significant price erosion."
"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). While a falling market price is a "share-price decline," the erosion score and flag serve as measurements of risk regarding the stability of the fund's value.
Top Holdings
The following are some of the top holdings in this ETF (note that this is a partial list):
• Meituan Class B: 8.71%
• PDD Holdings Inc ADR: 8.56%
• Alibaba Group Holding Ltd: 8.50%
• BYD Co Ltd Class H: 7.14%
• JD.com Inc: 6.43%
Pros
• Provides exposure to a specific sector (consumer discretionary) in the Chinese market.
Cons
• The ETF has experienced significant share-price declines over the last year.
• It carries a severe erosion-risk flag and a significant erosion-risk score.
Beginner takeaway
When looking at an ETF like CHIQ, it is important to look at both the price return and the total return. Because this fund has shown significant price declines and carries a severe erosion-risk flag, investors should understand that the share price has not been stable recently.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | MEITUAN CLASS B | n/a | 8.71% |
| 2 | PDD HOLDINGS INC ADR | PDD | 8.56% |
| 3 | ALIBABA GROUP HOLDING LTD ORDINARY SHARES | n/a | 8.50% |
| 4 | BYD CO LTD CLASS H | n/a | 7.14% |
| 5 | JD.COM INC ORDINARY SHARES CLASS A | n/a | 6.43% |
| 6 | TRIP.COM GROUP LTD | n/a | 4.54% |
| 7 | YUM CHINA HOLDINGS INC | YUMC | 3.53% |
| 8 | GEELY AUTOMOBILE HOLDINGS LTD | n/a | 3.47% |
| 9 | ANTA SPORTS PRODUCTS LTD | n/a | 2.89% |
| 10 | H WORLD GROUP LTD ADR | HTHT | 2.50% |