(CXSE) WisdomTree China - Ratings and Ratios

The WisdomTree China ex-State-Owned Enterprises Fund (NASDAQ:CXSE) is designed to provide exposure to Chinese equities while excluding state-owned enterprises (SOEs). Under normal market conditions, the fund allocates at least 80% of its assets to securities that replicate the economic characteristics of its underlying index. This index is a modified float-adjusted market capitalization-weighted index, focusing on common stocks of Chinese companies, excluding those controlled by the state. By excluding SOEs, the fund targets companies that are more aligned with private-sector growth and less influenced by government ownership. The fund is classified as non-diversified, which allows it to invest a larger portion of its assets in a smaller number of securities, potentially increasing exposure to specific sectors or companies.

From a technical perspective, CXSE has shown upward momentum, with its last price of $34.31 exceeding both its 20-day ($32.69) and 50-day ($30.93) simple moving averages. The 200-day SMA stands at $29.38, indicating a longer-term upward trend. The Average True Range (ATR) of 0.60 suggests relatively low volatility, making it accessible for investors seeking stability. The funds average trading volume of 48,828 shares over the past 20 days reflects moderate liquidity. With assets under management (AUM) of $441.32 million, CXSE is a sizable ETF, offering a cost-effective way to access the Chinese market excluding state-owned enterprises.

Looking ahead, CXSE is expected to maintain its upward trajectory over the next three months, supported by its current technical momentum. The funds price could potentially test the $36.00 level, representing a 4.9% increase from its current price, as it moves toward its next resistance level. The relatively low ATR of 0.60 suggests that price fluctuations will remain manageable, with daily price movements likely staying within a narrow range. The funds focus on non-state-owned enterprises positions it to benefit from Chinas private-sector growth, which is anticipated to outperform state-owned counterparts in the near term. Investors seeking exposure to Chinas economic growth without the influence of state-owned enterprises may find CXSE an attractive option.