ETF Trends
ETF Trends

Today China is growing the same way the United States was 100 years ago, so what does this mean for investors and their exchange traded funds (ETFs)? Naturally, this type of growth does not come without substantial risk while the economy and markets experience waves of uncertainty.  Jonathan Berstein, for ETFZone.com, reports Chinese ETFs aren’t doing as well as last year, due to the sell-off in February, however, most of the funds have since recovered.

The best performing ETFs in 2006 were the iShares FTSE/Xinhua China 25 Index (FXI)which was up 81% and PowerShares Golden Dragon Halter USX China (PGJ) up 51%.  In February, the Chinese market dropped, bringing the ETFs with them.  Since the drop off, FXI is up 17% and PGJ 10%, compared to the SPDR (SPY), which is up 6.5%. Although the volatility has left many investors dizzy, doomsday for China is still just a tale.  China continues to move ahead as consumer demand is high, factory output grows and a huge population is moving to join the 21st Century.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.