- ECNS is a Chinese small-cap fund offered by iShares, an alternative to its MCHI fund that prefers larger-cap Chinese companies.
- MCHI still looks fairly pricey. Yet in spite of the fact that ECNS followed MCHI lower in its recent correction, ECNS looks relatively cheap.
- Using the same market risk premium as MCHI, ECNS might offer as much as 30% upside.
- ECNS is also no more volatile than MCHI, and is more diversified across both sectors and its individual holdings.
- For the U.S. investor that is bullish on China, I think ECNS is an attractive long-term hold. MCHI is less exciting.
For further details see:
ECNS: Small-Cap Chinese Equities Look Attractive