KBA, MCHI, ASHR: 3 Best China ETFs to Buy During a War

Amid escalating geopolitical tensions and potential trade wars impacting global markets, investors are eyeing opportunities in Chinese equities for potential rebounds. Using TipRanks Compare ETFs Tool, we identified KBA, MCHI, and ASHR as three compelling China-focused ETFs, offering diversified exposure to mainland A-shares and broader indices with relatively low costs and liquidity. These funds have shown resilience in volatile periods, with MCHI providing broad coverage, KBA targeting select A-shares, and ASHR emphasizing CSI 300 constituents, positioning them as tactical buys during wartime uncertainty.

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KraneShares Bosera MSCI China A Share ETF KBA -0.70% ▼

The KraneShares Bosera MSCI China A Share ETF gives investors easy access to China’s fast-growing onshore A-share market on the Shanghai and Shenzhen exchanges. It tracks the MSCI China A Index, focusing on large- and mid-cap stocks that make up a big part of China’s domestic market.

KBA has the lowest expense ratio of 0.56%, and the smallest AUM of $183.76 million. KBA also offers annual dividend of $0.483 per share, reflecting a yield of 1.61%.

KBA’s top five holdings include Contemporary Amperex Technology Co Ltd 3750 -1.95% ▼ , Zijin Mining Group 2899 -2.84% ▼ , Kweichow Moutai Co. Ltd., Foxconn Industrial, and Zhongji Innolight.

iShares MSCI China ETF MCHI -0.12% ▼

The iShares MSCI China ETF gives investors broad exposure to China’s stock market across large- and mid-cap companies in various sectors. It tracks the MSCI China Index to mirror the total market performance and capture the essence of China’s dynamic economy.

MCHI also offers an above-industry-average dividend yield of 2.08%, paying semi-annual dividends of $0.735 per share. The fund has a moderate expense ratio of 0.59% and an AUM of $7.61 billion.

Its top five holdings include Tencent Holdings TCEHY +0.02% ▲ , Alibaba BABA -1.05% ▼ 9988 -1.53% ▼ , China Construction Bank Corporation 0939 +0.13% ▲ , PDD Holdings PDD -1.72% ▼ , and Xiaomi Corp. 1810 +0.78% ▲ .

Xtrackers Harvest CSI 300 China A-Shares ETF ASHR -0.51% ▼

The Xtrackers Harvest CSI 300 China A-Shares ETF allows investors to tap directly into China’s mainland stock market. It tracks the CSI 300 Index, which includes the top 300 stocks from the Shanghai and Shenzhen exchanges, covering a wide range of the economy. This broad-market ETF focuses on large and mid-sized companies for balanced exposure.

ASHR has an AUM of $1.74 billion and a moderate expense ratio of 0.65%. It carries the highest dividend yield among the three ETFs of 2.29%.

ASHR’s top five holdings include Contemporary Amperex Technology Co Ltd 3750 -1.95% ▼ , Kweichow Moutai Co. Ltd., Ping An Insurance Group 2318 -3.09% ▼ , Zijin Mining Group 2899 -2.84% ▼ , and Zhongji Innolight.

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