Additionally, in 2011 a number of fixed income focused Chinese ETFs were launched, including RMB (Guggenheim Yuan Bond), DSU (PowerShares Chinese Yuan Dim Sumb Bond), and CHLC (Market Vectors Renminbi Bond) which offer exposure to a market that was previously inaccessible to investors and most institutions for the most part.

In addition to sector specific China equity based ETFs, one can speculate on specific “themes” in China as well, such as an infrastructure build out via CHXX (EGShares INDXX China Infrastructure) or take positions in smaller cap names in the Chinese equity market via ECNS (iShares MSCI China Small Cap) or HAO (Guggenheim China Small Cap) for example.

The bottom line is that with China having the heaviest weighting in the MSCI Emerging Markets Index currently, at 16.95%, and with the index up 13.76% year to date (but down 7.34% over the trailing one year period) and seeing tremendous asset inflows throughout the first month of this year via various ETFs, perhaps it is time for portfolio managers to sift through the greater availability of China specific investment choices in the ETF space in order to zero in on specific exposure in these markets.

EGShares INDXX China Infrastructure

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