Two China-related exchange traded funds (ETFs) are proving the strength of some of their stocks. The iShares FTSE/XinhuaChina 25 Index (FXI), launched in October 2004, has risen 55.7% year to date. The biggest sector weightings were financial services 35%; telecom 22%; energy 20%; and industrial materials 12%, reported by Nancy Gondo in Investor’s Business Daily. China Mobile (CHL) was the biggest holding at around 11% of assets, PetroChina (PTR) and China Life Insurance (LFC) are other strong contributors.
The other ETF is PowerShares Golden Dragon Halter USX China (PGJ), which was launched in 2004. The fund returned 37.9% for the year so far. Business and telecom were the two biggest sector weightings.
For full disclosure, FXI is held in Tom Lydon’s client accounts.
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