Come Tuesday, Global X will launch the first U.S.-listed exchange-traded funds to provide narrow, sector-specific exposure to China.

They are:

• Global X China Consumer ETF (NYSEArca: CHIQ)
• Global X China Industrials ETF (NYSEArca: CHII)

The new funds are part of a broader wave of emerging market sector ETFs that have launched in recent months, but are the first to offer sector exposure strictly within the Chinese market.

“These are just the first in what will be a full family of China sector ETFs that we plan to launch, akin to the Select Sector SPDRs covering the U.S. market," said Bruno del Ama, Global X’s CEO, said about the funds. "We've started with these because they cover the space: The China Industrials fund covers the proven China of today, the manufacturing base; the China Consumers ETF covers the emerging consumer China of tomorrow."

CHIQ and CHII will both track market-cap-weighted indexes holding Chinese-focused companies that are investable by foreign investors, including so-called H-Shares, ADRs, GDRs and Red Chips. The funds will limit the weight assigned to single securities to 4.75 percent to avoid overconcentration in large, government-controlled firms.

The Details

CHIQ will track the S-BOX China Consumer Index, which consists of 40 stocks of companies that operate in the consumer sector and are either domiciled in China or have their main business operations in that country.

By segment breakdown, the index has a strong focus on retail, followed by food and consumer services.

Domestic consumption has been a recurring theme in the growth story of the Chinese economy. Chinese consumers are expected to play a larger and larger role in the global demand of products and services in general, as emerging wealth in that nation drives the creation of a massive consumer class. CHIQ hopes to capitalize on that trend.

CHIQ will come with an expense ratio of 65 basis points.

CHII will track the S-BOX China Industrials Index, which currently comprises 31 holdings.

By segment breakdown, the index is similarly exposed to construction and equipment.

Similarly to CHIQ, CHII also comes with an expense ratio of 65 basis points.

Global X expects to launch financials, energy, materials and technology sector ETFs shortly.

Earlier in November, iShares launched the first set of China sector ETFs focusing on four major segments of the economy: energy, financials, infrastructure and materials. Unfortunately for U.S. investors, however, those funds are listed in Hong Kong.

Global X’s other offerings include Global X/InterBolsa FTSE Colombia 20 ETF (NYSEArca: GXG), which has some $7.5 million in assets under management, and the Global X FTSE Nordic 30 ETF (NYSEArca: GXF), which holds nearly $4 million in AUM.