The ETF’s “low correlation to the U.S. market makes it a good diversification tool, especially for investors with insufficient exposure to emerging markets,” says Morningstar analyst Patricia Oey.

Other funds in the category include SPDR S&P China (NYSEArca: GXC) and PowerShares Golden Dragon Halter USX China (NYSEArca: PGJ).

iShares FTSE China 25

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