Today, the 14th of December, the Shanghai index closed up 2.5%.
I have been watching VGE Vanguard emerging markets, and IZZ I Shares China top 50.
VGE and IZZ both went down today 1.4% and 0.7%. I am trying to understand the drop when they invest mostly in Chinese mainland shares.
A: I can’t explain the intricacies of the Chinese markets.
Your ETFs are tracking different indices to the Shanghai Shenzhen 300 company index you are referring to.
IZZ tracks a FTSE 50 share index, while VGE tracks the FTSE Emerging Markets All Cap China A Transition Index.
Given the remarkable volatility of the Shanghai index, I don’t think you should be that surprised if mainland share indices go in different directions.
