A China exchange traded fund (ETF) invests in 25 liquid companies across industries such as financial, energy and telecom. China’s rising middle class represents a huge pool of consumers for businesses around the world. China’s labor force is almost at 1 billion and after joining the World Trade Organization, the government pulled down tariffs making it easier for foreign companies to invest directly in China, reports Paul Tracy of Seeking Alpha.
With growth in trade, rapidly rising incomes, and consumer buying power, the iShares FTSE/Xinhua China 25 Fund (FXI) has performed well; up 51% year-to-date and 10% for the month.
For full disclosure, FXI is held in Tom Lydon’s client accounts.
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