HOW TO INVEST IN CHINA WITH ETFs

HOW TO INVEST IN CHINA WITH ETFs

With China in a 30% bear market, those who belive a bottom might be in place, should consider a few ETF options now considering just as I write this the Shanghai’s market rallied 8.1%:

The Claymore/AlphaShares China Small Cap Index ETF (HAO) launched this Wednesday with .70% expense ratio. It includes about 120 different companies, it is a market-cap weighted index, and it does not allow any single name to go beyond a 5% weighting. This ETF is useful because if you think of the most popular ETF, XFI, it’s made up of huge companies that are predominately government-owned. The index will be rebalanced and reconstituted annually. The benchmark sets a minimum market-cap size of $200 million and a maximum of $1.5 billion.

The SPDR S&P China ETF (GXC) is perhaps HAO’s closest existing rival. But it isn’t really that similar. While it’s well-diversified with 300-plus names and takes an all-cap approach, GXC had around 1% of its assets in small-caps heading into January, according to Morningstar Inc. GXC has an expense ratio of 0.60%.

The most popular China ETF is the iShares FTSE/Xinhua China 25 Index Fund (FXI). It’s mega-cap focused and concentrated with its holdings.

If want to still short China, go with ProShares Ultra Short/Xinhua China 25 Fund (FXP)

BEST PERFORMING CHINA STOCKS FOR THE LAST 30 DAYS:

This is ranking of the Chinese stocks with column 3 representing the 30-day best performers. Column 4 and 5 are 5-day and 1-day performance for the same stocks. They all have relatively bad-bear type downsloping charts with exception of CHU and CMED.

Best books to read:

The End of Oil: On the Edge of a Perilous New World
Profits from Natural Resources: How to Make Big Money Investing in Metals, Food, and Energy (Wiley Trading)
Here is a good book to learn more about solar investments
The most influential investment book to read in 2008: by ex-Soros legendary fund manager Jim Rodgers “Bull on China”
Technical Analysis by Murphy

Good song for those of you who care about Techno