Worst performing ETFs this week: China ETFs & Metals

China and Hong Kong ETFs have been victims of the latest Evergrande debacle, sinking to our weekly worst performing ETFs. In China, Global X MSCI China Real Estate ETF plunged by -12.4%, followed by Invesco China Technology ETF and Global X MSCI China Consumer Discretionary ETF by more than 7%.  In Hong Kong, HSBC Hang Seng TECH UCITS ETF and KraneShares Hang Seng TECH Index ETF fell by 7.7% and 4.5% respectively

Last week, China's Ministry of Housing and Urban-Rural development informed banks that Evergrande's default is looming. The Chinese real estate giant and world's most indebted developer has amassed more than $300 billion of liabilities and will likely seek extensions for its interest payment deadlines. The bankruptcy of Evergrande would put a black mark on China's hot real estate activity, which represents 30% of the country's $15 trillion GDP.

Metals ETFs melt with China's real estate distress

Evergrande's mess has spooked metal investors and weakened prices as the potential slowdown of the Chinese real estate market would halt the heavy consumption of steel, lead, copper and other construction metals. Fear spread into other industries, driving palladium and rhodium prices down. These two metals are widely used in cars' catalytic converters.

ETFs that track the metals or the companies that mine them followed suit. Xtrackers Physical Rhodium ETC and Swisscanto Precious Metals - Physical Palladium took the biggest hits with losses of -15.7% and -8.46% respectively. Lyxor STOXX Europe 600 Basic Resources UCITS ETF shed -8.36% while iShares MSCI Global Metals & Mining Producers ETF lost -6.10%.

Bottom 10 ETFs of the week: Base Metals and Palladium ETFs

Europe

• Xtrackers Physical Rhodium ETC: -15.72%
• Swisscanto Precious Metals - Physical Palladium: -8.46%
• Lyxor STOXX Europe 600 Basic Resources UCITS ETF: -8.36%
• HSBC Hang Seng TECH UCITS ETF: -7.71%
• WisdomTree Silver: -7.30%
• Lyxor PEA PME (DR) UCITS ETF: -6.73%
• UBS ETF – MSCI Hong Kong UCITS ETF: -6.22%
• BNP Paribas Easy MSCI China Select SRI S-Series 10% Capped: -6.10%
• WisdomTree Lead: -6.07%
• KraneShares ICBCCS SSE STAR Market 50 Index UCITS ETF: -6.00%

Americas

• Global X MSCI China Real Estate ETF: -12.43%
• Aberdeen Standard Physical Palladium Shares ETF: -7.74%
• Defiance Next Gen Altered Experience ETF: -7.54%
• Invesco China Technology ETF: -7.31%
• Global X MSCI China Consumer Discretionary ETF: -7.21%
• Horizons Silver ETF: -7.14%
• Invesco DB Silver Fund: -6.60%
• Horizons Psychedelic Stock Index ETF: -6.50%
• Global X MSCI China Information Technology ETF: -6.41%
• KraneShares CICC China 5G & Semiconductor Index ETF: -6.27%

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