Ways to Step into China
A certain degree of volatility is to be expected when investing in emerging markets, and the recent events have not altered our views on broad emerging markets or on China. We continue to believe that emerging markets can provide valuable long-term growth potential and diversification benefits, and that today’s low historical and relative valuations represent an attractive re-entry point for investors who have been on the sidelines.
To dip back into emerging markets, consider the iShares Core MSCI Emerging Market ETF (IEMG), which provides access to 99% of the investable market (as defined by MSCI) for the low cost of 0.18%. For pure exposure to China, we favor the iShares MSCI China ETF (MCHI) for its efficient access to large- and mid-cap Chinese stocks.
* as measured by the MSCI Emerging Market IMI Index.
Heidi Richardson is a Global Investment Strategist at BlackRock, working with Chief Investment Strategist Russ Koesterich. She also leads the iThinking initiative for iShares. You can find more of her posts here.