Global X China Energy ETF
While the trio of PetroChina, CNOOC and Sinopec are becoming household names and are some of the largest energy firms on the planet — meaning they are fully supported by NYSE-listed shares — the bulk of China’s energy opportunities are smaller and unknown.
Ever heard of Shenhua Energy or Longyuan Power? Didn’t think so.
To that end, a bet on the Global X China Energy ETF (CHIE) maybe in order. The exchange-traded fund tracks 26 different Chinese energy firms — including CEO, PTR and SNP — as well as many of the smaller and more regional energy plays in the nation. This mix of domestically focused firms as well as the three international big boys gives CHIE and investors a “total look” at China’s energy market and could make it the best overall play China’s rising energy demand.
The fund is historically prone to bouts of feast and famine when it comes to number of shares traded — so limit orders are required when buying the ETF. Expenses are a bit on the high side at 0.65% or $65 per $10,000 invested … but that’s understandable given the size and location of its holdings.
Either way, CHIE could be just what investors are looking for in a Chinese energy play.
As of this writing, Aaron Levitt did not hold a position in any of the aforementioned securities.