KURE, EEMA, CHIH: Chinese Healthcare ETFs Have the Potential for Big Gains

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China is one of the fastest growing economies in the world, and it has an innovative and growing healthcare industry.

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While it doesn’t yet produce world-beating pharmaceutical companies such as those found in the U.S. and Europe, China is home to several smaller innovative healthcare companies. Knowing which companies to invest in can be tricky for individual investors.

Exchange-traded funds (ETFs) can help remove the guesswork for investors by offering broad-based exposure to several different Chinese healthcare companies under a single umbrella. ETFs carry less risk than individual stocks, especially when it comes to China, where regulations and oversight can be opaque.

The Best Chinese Healthcare ETFs

Among the top healthcare ETFs that can provide exposure to China is the KraneShares MSCI All China Health Care Index ETF KURE +3.98% ▲ . It tracks an index of Chinese healthcare companies (pharmaceuticals, hospitals, biotech) that are listed in Mainland China and Hong Kong.

There is also the Global X MSCI China Health Care ETF (CHIH), which tracks the MSCI China Health Care 10/50 Index and offers exposure to the entire Chinese healthcare sector. The iShares MSCI Emerging Markets Asia ETF EEMA +0.28% ▲  is a broad-based fund that provides exposure to large- and mid-sized companies across emerging Asian markets, including dozens of Chinese healthcare stocks.

Below is a chart comparing these three ETFs. As one can see, each ETF comes with a decent dividend yield, in addition to the potential for share price appreciation.

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