When you look at how low China’s valuation is, it seems crazy not to invest something there.
China’s estimated 2014 P/E ratio is 8.1, cheaper than all other major world markets. Even harder to comprehend is the fact that smaller emerging markets such as Argentina and Turkey are more expensive. China’s stocks have never been cheaper. JPMorgan expects a 15% to 20% bump in the coming weeks as investors look for value in the world’s second largest economy.
So, how do you take advantage of this value play?
Well, you could buy a few blue-chip Chinese stocks listed in the U.S. But why buy one or two when you can get broader exposure with an exchange-traded fund? A better move would be to buy a China ETF that gives you the exposure you’re looking for. Here are three funds I think will do the trick.