TSE:ZCH

BMO CHINA EQUITY INDEX ETF (ZCH.TO)

18.09
-0.36 (1.95%)
as of Jun 5, 2026, 7:55:20 pm Market Open.
53 watching
0
Investor Insights
star iconJun 6, 2026, 12:00 am

This summary was created by AI, based on 2 opinions in the last 12 months.

The BMO China Equity Index ETF, symbol ZCH-T, has been attracting attention from market experts recently. With one expert highlighting a 12% increase since bottoming in April, the ETF has shown resilience, albeit navigating a sideways trading range between $20 to $24. Another expert noted an impressive 22% gain since the market's tumultuous selloff in March, suggesting a positive trajectory as the fund continues to recover. Both reviews emphasize China's strong performance in the current market environment, signaling optimism for further growth. Overall, experts are cautiously optimistic about the ETF's potential, indicating that recent global market advances may bode well for future returns.

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Consensus
Positive
valuation icon
Valuation
Fair Value
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COMMENT
China equity ETF. There is not likely to be any escalation in trade risk between China and US. Trump is not going to escalate, but there will be no progress either. China has massive growth problems. The population will peak in the next 5 to 10 years according to the world bank. Their natural growth is held at 2%. There is a big headwind in China and he would not add to it except in pull backs. He prefers the 'A' shares market in the US for China exposure. This is not a no-brainer play.
COMMENT

Modi is now allowing Apple to do business there. India's had problems with bureaucracy, and if he makes it easier for foreign companies to come in and raise capital, it could be great. It depends on how the trade talks will go in terms of China. China has many geopolitical issues.

BUY
He likes China. Alibaba is 15% of it and China Mobile is 10%. Very concentrated this ETF but still like it. He prefers another actively managed approach. He likes the GEM ETF from Goldman Sachs to play the theme.
BUY
Is all the bad news baked in? A good China ETF. China is the second-largest economy in the world, but has less than 2.5% exposure in the MSCI indexes. America has peaked, so money managers will be chasing China. This is a 10-20-year play with lots of corrections. Dont time this. A long-term secular play. Edge money in patiently over time.
SELL

He got out of emerging markets early this year at a modest loss. The currency issue has knocked down China ETFs. China doesn't play by the rules, either. Some may call it corruption. Cut your losses and sell.


WATCH

He has been underweight on China for the last year or so. It has underperformed dramatically over the last 6 months. It is starting to get more interesting to him now. He gets it through a US EFF. China is going to have a challenge holding a 7% growth rate. It should slow to 4-5% over the next couple of years. He thinks ZCH-T will fall another 10%.

PAST TOP PICK

(A Top Pick Nov 7/14. Down 2.2%.) This hasn’t worked as well as the Shanghai index, but he feels safer with this one. This one will be dragged along.

TOP PICK

This ETF will hold nothing but ADRs. The accounting standards on ADRs fit international standards, so you are not going to get zinged by some obscure Chinese accounting methodology on some company. Chart shows it had formed a base in 2012-2013 and broke out upwards and then based again and is now starting to break out. Has a decent pattern. Overall, this looks okay.

COMMENT

This is a fine product but the question is, what is your view on China. China is still growing, virtually faster than any other part of the world, with the possible exception of India. 7%-7.5% is the GDP growth. However the salad days are over. Growth is slowing, but so is everyone’s.

BUY

If you look at it, it is interesting because it is composed of ADRs from the US. Nothing is purchased in China. ADRs are subject to international accounting standards. Some big Chinese companies are in there. There is a lot to be said for this one. He previously recommended the Chinese consumer ETF and it has done well.

COMMENT
XCH-T, which is unhedged, or the ZCH-T that is hedged? Really depends on what you think the Yuan is going to do. If you believe it is going to rise and would not negatively impact revenues, he would go with the XCH-T.
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