facebookIm thinking of investing in China etf. Will XCS6 be a good choice if i want to a ireland domiciled etf? Is Xtrackers reliable? Any other recommendation? - Seedly

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Anonymous

31 Oct 2020

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Stocks

Im thinking of investing in China etf. Will XCS6 be a good choice if i want to a ireland domiciled etf? Is Xtrackers reliable? Any other recommendation?

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Nicholas Beh

31 Oct 2020

Student Ambassador 2020/21 at Seedly

If you are planning to invest into China through ETFs, I would suggest going through the Hong Kong markets, which have the same withholding tax benefits as their Irish-domiciled counterparts. Avoid US-domiciled China ETFs as dividends will be doubly taxed (10% by China and 30% by US).

XCS6 tracks the MSCI China index and has an expense ratio of 0.65% which is rather high. Instead, go for the iShares Core MSCI China ETF (2801:HK) which has much better liquidity and lower expense ratio of 0.20%. There are plenty of other China ETFs too - check out this Seedly article on some of the ETFs available.

Normally I would recommend Vanguard's Total China Index ETF (3169) but Vanguard is planning to pull out of Hong Kong so I am not too sure about its future.

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