GXC - GXC: A Long-Term Investment In China
2024-03-14 09:40:23 ET
Summary
- The SPDR S&P China ETF offers exposure to both U.S.-listed ADRs and Chinese A-shares, with a tilt towards large-cap technology companies.
- GXC is trading at attractive valuations compared to the S&P 500, with a P/E ratio of 10x and estimated EPS growth of 16% for the next 3-5 years.
- China's economy is maturing, facing new challenges and opportunities.
- GXC's P/E ratio is low compared to the S&P 500, with promising growth potential, but the fund is more attractive for long-term investors.
Thesis
With U.S. stocks at record highs and valuations stretched , a retail investor might be wondering where to deploy their capital next. We are not fans of buying at the top, even if longer-term equities do deliver robust returns. The best mantra to use is 'buy low, sell high'. Following this mantra is not very difficult, as long as investors can emotionally detach themselves from the fear of missing out ('FOMO') and the fear of 'the sky is falling'....
GXC: A Long-Term Investment In China