In the emerging markets, China is still leading the charge, with an economic expansion of 7.8% in the third quarter. The Chinese economy is expected to expand 7.4% in 2014, leading world economies.
The iShares MSCI Emerging Markets ETF (NYSEArca: EEM) provides broad exposure to emerging market countries, including a 19.4% allocation to China. [BlackRock: A Long Haul Emerging Markets ETF]
Nevertheless, potential investors should be aware of the possible currency risk ahead. Once the fed eventually eases back on its accommodative measures, the U.S. dollar will strengthen, which could hurt non-U.S. dollar-denominated foreign investments – foreign investments in a weaker currency will be worth less U.S. dollars once converted over.
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