WisdomTree China ex-State-Owned Enterprises Fund (CXSE)

Three low-cost ETFs provide different types of exposure to Chinese equities and may be poised for success depending upon how the ongoing trade war develops.

Coal consumption reached all-time high in 2024 due to demand from India and Indonesia, offsetting reductions in advanced economies. China plays pivotal role, with imports and domestic use remaining high despite efforts to diversify energy sources. Global coal demand expected to plateau but remain at record levels.

Alibaba Group Holding (NYSE: BABA) traded up on news of China's Central Economic Work Conference, with investors anticipating stimulus measures.

Chinese equities surged over 35% in recent weeks due to policy stimulus. MSCI China Index doubled S&P 500 gains, driven by monetary easing and government measures. Chinese ETFs outperform global benchmarks.

Investors should tap the strength in China’s economy with the best-performing ETFs in the initial weeks of 2023.

ETFs focusing on Chinese stocks and emerging market internet stocks were top performers in November.

A-shares are about 58% of the largest 500 Chinese companies regardless of listing location.