Technically, all the Chinese ETF charts look similar with sharp declines in a waterfall pattern (see charts) from end-February onwards. While they have reached their respective plunge pools and splashed, they could spend some weeks in their plunge pools before any sustained recovery is likely.
ETFs (exchange-traded funds) have not taken off in the same way as REITs. The SGX has 28 ETFs listed on it compared to around 40 REITs and property trusts. These 28 include dual-currency ETFs as some ETFs trade in US$ and Singapore dollars or RMB and Singapore dollars. In terms of liquidity too, ETFs lag those of S-REITs. However, they are useful vehicles for investing or trading in an unfamiliar market. ETFs can be bought and sold with ease via the trading platforms of local brokers. The only issue with ETFs traded on the SGX is that they are not as liquid as stocks and REITs.
An ETF typically aims to produce a return that tracks or replicates a specific index such as a stock index or commodity index. Such index-tracking ETFs are passively managed by ETF managers and do not try to outperform the underlying index. Index tracking ETFs have fees and charges that are usually lower than those of actively managed investment funds.
