ASHR ETF

ASHR offers a compelling buy-the-dip opportunity with a low P/E ratio and improving earnings estimates, despite recent volatility. The ETF has a diversified large-cap portfolio with significant exposure to Financials, Industrials, and Information Technology sectors. ASHR's technical setup shows support between $25-$26, with bullish seasonality expected in November, making it an attractive investment.

ETFs pulled in $19.5 billion in capital last week, with international equity ETFs leading the way. China ETFs registered strong inflows.

During the "Golden Week" when the Chinese A-share market was closed, overseas Chinese stocks and funds experienced notable gains. The Nasdaq Golden Dragon China Index rose 3.1%, reaching its highest level since February 2, 2023, with a weekly gain of 11.9%.

All hope is not lost for Chinese large-caps. Through the pessimism, the fundamental value here is hard to ignore. Also keep an eye out for technical support in the near-term.

Global equity ETFs have experienced consistent inflows throughout the year, with one notable exception. China has faced numerous challenges, including a property debt crisis, a significant decline in the stock market, and a gradual easing of COVID-19 restrictions.

China's economy exceeded expectations by growing 5.3% in the first quarter of 2024. However, conflicting economic data raised concerns about the future outlook, despite optimistic growth forecasts.

Chinese stocks have been serial wealth destroyers in recent years. But there is a price for everything, and at current de-rated valuations, the risk/reward skews very favorably. Keep an eye out for more policy support to extend this year's rally.

KBA: Poised To Benefit From A Chinese Dragon Year Turnaround

The first month of 2024 is already complete, and below is a look at the performance of various asset classes during January using key ETFs that we track closely. The S&P 500 (SPY) finished the month up 1.59% even though the average stock in the index was down 0.84%.