Global X MSCI China Consumer Discretionary ETF

Global X MSCI China Consumer Discretionary ETF (CHIQ) tracks the MSCI China Consumer Discretionary 10/50 Index. That index holds Chinese companies that sell nonessential goods and services. It is a narrow bet on one sector in one country. As of July 31, 2026, its largest holdings were Meituan, PDD Holdings and Alibaba. Its 0.65% expense ratio (the yearly fee, as a share of assets) is higher than the 0.51% average for similar China funds.

• Over the year to Oct 27, 2026, CHIQ returned -33.7%, 5th of 6 among similar funds.
• Its 5-year annualized return was -11.2% and its 10-year +3.9%.
• In the 2020 COVID crash it fell 23.5% and regained its old high 2.5 months after the low.
• Its worst full calendar year was 2018 (-28.7%); its best was 2020 (+92.6%).
• The deepest fall in its price history was 67% (Feb 17, 2021 to Oct 24, 2022), not yet recovered.

As of Jul 31, 2026, the fund held 61 securities; the ten largest made up 56.66% of assets.

• Over the three months to Jul 31, 2026, investors withdrew a net $7.8M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +17.80%, -12.16%, -8.57%.

CHIQ starts with the MSCI China Index. That index weights companies by free float-adjusted market capitalization, which means by the value of the shares the public can actually trade. CHIQ's index keeps every company in it that the Global Industry Classification Standard (GICS) labels consumer discretionary. As of December 31, 2025, that came to 57 companies. They can be Hong Kong-listed H-shares, Red Chips and P-Chips, mainland A-shares bought through the Stock Connect programs, or US-listed American Depositary Receipts.

A "10/50" cap limits concentration. At each rebalance, no single corporate group can be more than 10% of the index. All groups above 5% combined can't be more than 50%. The index is rebuilt and reweighted every quarter. Even with the caps, the 10 largest holdings were 56.7% of the fund as of July 31, 2026, led by Meituan at 9.5%.

The fund generally buys every stock in the index in roughly the same proportions. It may use a sample of the index's stocks when that is cheaper or more practical. Stock Connect has a daily buying quota that is shared by all investors, so purchases of A-shares can be rejected on busy days. The fund may lend up to one-third of its assets to other investors to earn extra income. As of July 31, 2026, it also held a small MSCI China futures position, about 0.14% of assets.

• CHIQ charges 0.65% a year, versus an average of 0.51% for the similar funds below (4th of 6, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $66 in the first year and $810 over 10 years (assuming a 5% annual return).

CHIQ is a concentrated single-country sector fund, and its swings have been far larger than a broad stock fund's.

CHIQ launched in November 2009, after the 2008 financial crisis. In the 2020 COVID crash it fell 23.5% and recovered in about 2.5 months. In 2022 it fell 40.7% between January and March. That drop was part of a 67% decline from February 17, 2021 to October 24, 2022, and the fund had not made back that loss as of October 27, 2026. Its worst calendar year in the prospectus was 2018, a 27.7% loss. A retiree who has to sell shares in a slump like that would lock in deep losses.

The yield was 1.81% for the 12 months to October 27, 2026, and the fund pays twice a year, so it offers little income. The SEC's standard example puts costs at $66 for the first year on $10,000 invested. Past results don't predict future returns, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.