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CHIQ: China’s Consumer Discretionary Sector Headed For Major Speedbumps (NYSEARCA:CHIQ)

China’s consumer discretionary sector has seen extreme gains over the past few months as investors pile into the only major area of global economic growth.

China’s consumption has grown at a fast pace over the past decade, but growth has decreased substantially over the past few years as its housing market becomes unstable.

Recent surprise defaults of AAA-rated state-owned-enterprises have sparked fears of hidden widespread risks in China’s major corporations.

Despite risks, valuations of China’s major consumer discretionary companies have nearly doubled this year.

The China consumer discretionary ETF CHIQ’s performance may reverse soon as the PBOC looks to stop the Yuan’s rise and the U.S. flirts with delisting Chinese firms.

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Can Brazilian Small-Caps Rally as Manufacturing Expands?

In the meantime, for ETF investors looking to get exposure to Brazil as a potential bargain should the country stage a comeback in 2021, here are two funds to consider with varying strategies and market caps: iShares MSCI Brazil Capped ETF (NYSEArca: EWZ) : EWZ seeks to track the investment results of the MSCI Brazil 25/50 Index, which consists of stocks traded primarily on B3 (the largest Brazilian exchange).
The fund seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the MVIS® Brazil Small-Cap Index.

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