Xtrackers Harvest CSI 300 China A-Shares ETF

ASHR

Market cap $1.66B

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It's been a good year for international equity ETFs. As a category, broad exposure funds tapping into both developed and emerging market equities have delivered outsized gains relative to U.S. markets this year, as well as much sought portfolio diversification.

Despite mounting macro headwinds at the start of the year, Chinese equities have continued to deliver positive performance. While near-term flows can provide further upside, the durability for the equity rally will hinge on policy choices ahead.

One of the most heavily traded China ETFs, iShares MSCI China, is up nearly 40% year to date.

China's ongoing negative PPI supports a deflationary trend, benefiting global markets and providing a constructive backdrop for Xtrackers Harvest CSI 300 China A-Shares ETF. ASHR remains attractively valued with a low P/E ratio, solid long-term EPS growth, and a fair PEG, supporting my continued buy rating. Technical momentum is strong, with shares testing key resistance and a potential upside target of $35 if the uptrend persists.

Among APAC equity markets, Australia has a higher beta to oil prices while India, Indonesia and Thailand have lower betas. Domestic political uncertainties have been one main reason for the decoupling trend seen in Indonesia and Thailand.

China's Q2 GDP beat forecasts at 5.2%, easing stimulus pressure but exposing cracks in demand and real estate. Tap ETFs like MCHI and FXI.

DWS has operated in the ETF space via its Xtrackers family of funds in the US for nearly 20 years. It has flown under the radar compared to the largest ETF issuers.

Not even a quarter into 2025 and we've been on a roller coaster of economic and market events. It's the perfect time for the Exchange conference, where advisors, issuers, and other market experts can come together and share ideas.

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