Passing the Torch to China's ETFs | ETF Trends

As the torch is lit during the opening ceremony of the Beijing Olympics, will it light a fire under the Chinese exchange traded funds (ETFs), too?

Many investors are pondering whether they should get back into the Chinese market now and what impact, if any, the Olympics will have in both the near- and long-term.

The Games of the XXIX Olympiad are showing off the best athletes of the world, but it could also be a chance for China to flex its economic muscle for investors. Over the past 20 years, the Olympics held in Greece, Spain, and South Korea have helped to spotlight the economies of the host countries. Now it’s time for China’s strength to shine, reports John Spence for MarketWatch.

China has long been growing since before the games, at a clip of 10% a year for the past 20 years. One strategist points out that he expects the trends to continue – games or no. Innovation, technology and labor will continue to be factors in driving China’s explosive growth.

There are plenty of paths to take investors to China via ETFs:

  • iShares MSCI/Xinhua China 25 index (FXI), down 21.3% year-to-date
  • NETS Hang Seng China Enterprises (HKG), down 6.2% since April 16 inception
  • SPDR S&P China (GXC), down 26% year-to-date
  • PowerShares Golden Dragon Halter USX China (PGJ), down 29.2% year-to-date
  • WisdomTree Dreyfus Chinese Yuan Fund (CYB), up 0.3% since May 22 inception

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.