Traders pouring billions into Chinese-stock exchange-traded funds (ETFs) should proceed with caution, as this strategy has proven to be fraught with risk. Over the past decade, these ETFs have not only faced significant reversals but have also cost many investors a substantial amount of money.
While Chinese ETFs have experienced periodic rallies that created short-term trading opportunities, their long-term performance has positioned them as some of the worst wealth destroyers among U.S. ETFs. According to data compiled by Bloomberg, these funds now rank alongside Cathie Wood’s flagship ETF, which has seen significant declines since the pandemic, as leading culprits in the erosion of asset value for U.S. ETF investors.
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