As China and Google wage an increasingly hostile war against one another, certain exchange traded funds (ETFs) may present an opportunity. This is especially so if Google leaves or is forced out of China.

The battle between Google (NYSE: GOOG) and China escalated this week: Google routed Chinese users to its Hong Kong homepage; China volleyed back and blocked its denizens from searching sensitive topics on that site, as well. [A New Approach to Emerging Markets.]

While most investors are pretty much shrugging off the news, it would have wide-ranging implications because among the companies that plan to stop using Google tools and services in China include Motorola, China Unicom and Tom Online. All three have pulled Google search from their phones and/or homepages, reports Paul McDougall for Information Week.

It seems like in the Google/China battle, there will be few losers. Google is a rapidly growing giant and relied upon by people the world over for email, document storage and an ever-growing list of other tools. Meanwhile, China has several strong tech companies that are well-prepared to step in and fill any void Google leaves behind. [The Top 10 ETFs Investors Are Trading.]

For more stories about China, visit our China category.

  • iShares FTSE/Xinhua China 25 Index Fund (NYSEArca: FXI): Telecommunications are 17.7%

  • Claymore/AlphaShares China Small Cap ETF (NYSEArca: HAO): Information technology is 12.3%

  • Claymore/AlphaShares China Technology ETF (NYSEArca: CQQQ)

  • GlobalX China Technology ETF (NYSEArca: CHIB)

  • SPDR S&P China (NYSEArca: GXC): Information technology is 11.3%; telecommunications is 11.2%

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.

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