⏳ Final hours! Save up to 60% OFF InvestingProCLAIM SALE

This Chinese Small Cap ETF Just Hit New Lows

Published 01/20/2017, 12:55 AM
Updated 05/14/2017, 06:45 AM
US500
-
CNXT
-

Investors looking for ETFs with negative momentum should begin to consider the VanEck Vectors ChinaAMC SME-ChiNext (NYSE:CNXT). This product just hit a new 52-week low of $28.32 today, and is now down 26.02% from its 52-week high price of $35.69 per share.

Will this ETF continue its string of recent losses? Let’s take a closer look at the fund, its recent gains, the category it resides in, and its ratings and outlook to get a sense of whether its momentum is sustainable or not.

Inside CNXT’s Fall

As mentioned earlier, CNXT has now lost 26.02% from its 52-week high, which was hit back on April 15, 2016. The fund has now returned -3.18% over the past month, -13.15% over the past three months, and -16.65% in the past six months. Those returns compare to the benchmark S&P 500 index’s -0.22%, 6.20%, and 5.13% returns in the same periods, respectively. Clearly, CNXT has serious bearish momentum.

A Look Under The Hood

Market Vectors China AMC SME-ChiNext ETF is an Equity-focused product issued by Van Eck Associates. Its expense ratio of 0.78% makes it the #28 cheapest ETF among 32 total funds in the China Equities ETFs category.

CNXT currently boasts $23.35M in assets under management (AUM), placing it #15 of 32 ETFs in its category, and #1271 of 1920 total ETFs in the U.S. exchange traded universe. This is a small fund with low volume and low AUM, which makes it susceptible to big swings.

The investment objective of the Market Vectors ChinaAMC SME-ChiNext ETF to track the performance of the 100 largest and most liquid stocks listed and trading on the Small and Medium Enterprise Board and the ChiNext Board of the Shenzhen Stock Exchange. Such companies may include small- and medium-capitalization companies.

CNXT SMART Grade: More Gains Ahead?

CNXT currently has an ETF Daily News SMART Grade of C (Neutral), and is ranked #24 of 32 funds in the China Equities ETFs category.

A SMART Grade of C suggests a neutral risk/reward scenario, but its bearish momentum will likely lead to a downgrade in the near future.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.