ETF Trends
ETF Trends

China has been an economic hot spot over the past few years. Even as the global economy grew weaker last year, the country remained on track and kept backward  momentum to a minimum. Now that a global recovery is in the offing, keep an eye on China’s exchange traded funds (ETFs).

While the world economy shrank 0.8% last year, China’s economy grew 8.7% in 2009 and 10.7% in the the fourth quarter alone. As China’s economy continues to grow and strengthen, there are benefits in store for the rest of us, reports Tony Sagami for Uncommon Wisdom. [The Impact of China’s Tighter Lending.]

The International Monetary Fund (IMF) is calling for a growth rate of 10% this year followed by 9.7% in 2011. While the United States struggles to free itself from the recession, can emerging markets stay on track? [Are Chinese ETFs trending too high?]

Sagami believes so after witnessing it firsthand. He’s visited factories in China, seen how full the trucks are and talked to the country’s citizens. [China Drives Coal and Steel.]

If China continues to grow at its current rate, it could very well replace Japan as the world’s second-largest economy by the end of this year, says Edward Wong for The New York Times.

For more stories about China, visit our China category.

  • iShares FTSE/Xinhua China 25 (NYSEArca: FXI)

  • SPDR S&P China (NYSEArca: GXC)
  • Claymore/AlphaShares China All-Cap (NYSEArca: YAO)
  • Claymore/AlphaShares Small Cap (NYSEArca: HAO)
  • PowerShares USX Golden Dragon Halter (NYSEArca: PGJ)

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. 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.