Investors in Chinese stocks haven’t had much to cheer about in recent times. The iShares MSCI China ETF (NASDAQ:MCHI) is down 10.3% year-to-date, and the ETF has generated an ugly negative annualized return of -17.4% over the past three years as of October 31st.
However, better times could be ahead. I’m bullish on MCHI, as there is plenty of room for a catchup rally, and Chinese stocks are conspicuously cheap compared to their U.S. peers. What’s more, analysts see plenty of upside potential based on their average price target for MCHI, and TipRanks’ Smart Score system gives MCHI an Outperform-equivalent rating.
What is the MCHI ETF’s Strategy?
According to iShares, MCHI “seeks to track the investment results of an index composed of Chinese equities that are available to international investors.” It gives investors exposure to both “large and mid-sized…
