“This fund’s low correlation to the U.S. market makes it a good diversification tool, especially for investors with insufficient exposure to emerging markets,” writes Morningstar analyst Patricia Oey in a profile of the China ETF.
“FXI invests in some of the largest Chinese companies with substantial economies of scale and healthy profit margins,” she said. “Consumption in China is poised to continue growing well into the future. The Chinese consumer is expected to benefit from a gradual appreciation of the yuan and from rising wages.”
iShares FTSE China 25 Index Fund
