Worst ETFs of the Week: China, Euro Value Stock and Thematic ETFs

Drop in European and Asian markets following news Covid-19 contaminations

Although the US Markets performed well last week the same cannot be said for Asian and European markets. Indeed, all the Asian indices ended the week in the red. Most of European stock indexes ending the week in negative territory. This negative performance for the Asian and European markets is largely due to a resumption of Covid-19 cases in several areas. Indeed, the Delta variant, which comes from India, is spreading in several countries such as the Australia, China, United Kingdom and Spain.

In both European and Americas bottom 10 we found numerous ETFs tracking the Chinese market. In the European ranking there is one ETFs tracking value stocks in Europe. In the American bottom 10, we find four thematic ETFs, the Breakwave Dry Bulk Shipping ETF, the Global X Cannabis ETF, The De-SPAC ETF, and the Direxion Moonshot Innovators ETF.

Bottom 10 ETFs of the Week: China ETFs, Euro Value Stocks ETFs, and Thematic ETFs

Europe

• KraneShares CSI China Internet UCITS ETF: -4,61%
• HSBC Hang Seng TECH UCITS ETF: -3,59%
• Lyxor China Enterprise (HSCEI) UCITS ETF: -3,54%
• UBS ETF Solactive China Technology UCITS ETF: -3,36%
• Xtrackers Harvest FTSE China A-H 50 UCITS ETF: -3,33%
• Deka STOXX Europe Strong Value 20 UCITS ETF: -3,24%
• Lyxor China Enterprise (HSCEI) UCITS ETF: -3,24%
• Xtrackers FTSE China 50 UCITS ETF: -2,93%
• iShares China Large Cap UCITS ETF : -2,92%
• FinEx China UCITS ETF : -2,87%

Americas

• Breakwave Dry Bulk Shipping ETF: -9,77%
• KraneShares CSI China Internet ETF: -5,17%
• Global X China Energy ETF: -4,97%
• Global X Cannabis ETF: -4,86%
• The De-SPAC ETF: -4,74%
• Defiance Next Gen Altered Experience ETF: -4,53%
• KraneShares Hang Seng TECH Index ETF: -4,38%
• Invesco China Technology ETF: -3,98%
• Direxion Moonshot Innovators ETF: -3,97%
• PACER CSOP FTSE CHINA A50 ETF: -3,77%

Most of last week’s worst performing ETFs are exposed to Chinese markets. In fact, the Chinese technology sector has suffered for several reasons. The first being bad indicators published last week on the activity of Chinese factories as well as on non-manufacturing purchases from China.

Secondly, on Thursday, during the 100th anniversary of the Chinese Communist Party, Xi Jinping, the Chinese president, made a speech threatening those who would try to intimidate China. Following this aggressive announcement and fears of a more hawkish China, the Friday session was very bad for the Chinese markets. In addition, there is a resumption of Covid-19 cases due to the Delta variant in the country, which further accentuated the decline of last week. The accumulation of all this bad news weighed heavily on the Chinese market which displays bleak performance last week.

Only one ETF exposed to European companies is in the European bottom 10: the Deka STOXX Europe Strong Value 20 UCITS ETF. This ETF track the STOXX Europe Strong Value 20 index which is composed of the 20 “purest” value companies in Europe. A value stock is associated to a company that seems to be trading at a price lower than its fundamental value.

There are four thematic ETFs in the American Bottom 10. The Breakwave Dry Bulk Shipping ETF which provides exposure to the dry bulk shipping market through a portfolio of near-dated freight futures contracts on dry bulk indices. The Global X Cannabis ETF tracks the Cannabis Index USD which gives exposure to equity of compagnies that doing business in the production and sale of cannabis products. The De-SPAC ETF that offers pure-play exposure to private companies that become public as the result of a merge. Finally, the Direxion Moonshot Innovators ETF that allows to get exposure to the 50 most innovative US companies at the forefront of both pursuing innovation and having the potential to disrupt existing technologies and industries.

Keep reading the Best ETFs of the Week here.

Find and compare over 7,000 ETFs with our free tools:

• ETF Screener
• ESG Observatory
• Download the Trackinsight 2021 Global ETF Survey