In spite of the the U.S.-China trade war and the outbreak of the coronavirus, many investors remain optimistic about investing in the Chinese market. There are about 35 exchange-traded funds (ETFs) catering to these investors, not including leveraged or inverse funds. These ETFs hold everything from major banks like China Construction Bank Corp. to insurance outfits like Ping An Insurance, and much more. Although there remains a risk to investors interested in Chinese equities, as the future of trade deals between the U.S. and China is still uncertain, choosing an ETF may help to mitigate the overall risk associated with investing in any particular equity.

The best China ETF for Q1 2020 is the Global X MSCI China Information Technology ETF (CHIK). Below, we'll explore the top 3 China ETFs. All data as of February 10, 2020.

Global X MSCI China Information Technology ETF (CHIK)

  • Performance over 1 year: 39.9%
  • Expense Ratio: 0.65%
  • Annual Dividend Yield: 1.37%
  • 3-Month Average Daily Volume: 19,363
  • Assets Under Management: $13.2 million
  • Inception Date: December 7, 2018
  • Issuing Company: Global X

CHIK tracks the MSCI China Information Technology 10/50 Index, a subset of large- and mid-capitalization information technology companies within the MSCI China Index. The index caps each "group entity" (a company and all companies it has a controlling stake in) at 10% of the index, and caps the allocation of all group entities with more than a 5% weight at 50% of the index. Among the top holdings by weight are Xiaomi Corp., an electronics company, Sunny Optical Technology Group Co., Ltd., a maker of optical lenses, and Semiconductor Manufacturing International Corp., a semiconductor firm.

VanEck Vectors ChinaAMC SME-ChiNext ETF (CNXT)

  • Performance over 1 year: 38.5%
  • Expense Ratio: 0.65%
  • Annual Dividend Yield: 0.45%
  • 3-Month Average Daily Volume: 24,219
  • Assets Under Management: $32.6 million
  • Inception Date: July 24, 2014
  • Issuing Company: VanEck

The VanEck Vectors ChinaAMC SME-ChiNext ETF follows the SME-ChiNext 100 Index, which is a free-float market-cap-weighted index of the 100 largest, most liquid companies in the Small and Medium Enterprise Board and ChiNext Market of the Shenzhen Stock Exchange. The top holdings in CNXT are currently Luxshare Precision Industry Co., Ltd., an electronic component manufacturing company, Contemporary Amperex Technology Co., Ltd., a battery maker, and Wens Foodstuff Group Co., Ltd., a meat products company.

Global X MSCI Consumer Staples ETF (CHIS)

  • Performance over 1 year: 37.1%
  • Expense Ratio: 0.65%
  • Annual Dividend Yield: 3.49%
  • 3-Month Average Daily Volume: 14,690
  • Assets Under Management: $4.2 million
  • Inception Date: December 7, 2018
  • Issuing Company: Global X

CHIS is an ETF utilizing the MSCI China Consumer Staples 10/50 Index as a benchmark. This index tracks large- and mid-capitalization consumer staples equities from the MSCI China Index. The index caps each "group entity" (a company and all companies it has a controlling stake in) at 10% of the index, and caps the allocation of all group entities with more than a 5% weight at 50% of the index. The top holdings for CHIS at this point are China Mengniu Dairy Co., Ltd., a manufacturer of dairy products, Hengan International Group Company, Ltd., a maker of sanitary napkins and diapers, and China Resources Beer Holdings Co., Ltd., a food and beverage company.