Topic: How To Invest

ISHARES FTSE/XINHUA CHINA 25 INDEX FUND $38.31 – New York symbol FXI

ISHARES FTSE/XINHUA CHINA 25 INDEX FUND $38.31 (New York symbol FXI; buy or sell through brokers) is an ETF that aims to track the FTSE/Xinhua China 25 Index, which is made up of the 25 largest and most liquid Chinese stocks. All of the stocks in the index trade on the Hong Kong exchange. Some also trade as American Depositary Receipts (ADRs) on the New York exchange.

The fund’s top holdings are China Mobile, 10.3%; China Construction Bank, 8.7%; Industrial & Commercial Bank, 7.9%; CNOOC, 6.9%; Bank of China, 6.0%; Ping An Insurance, 4.2%; Petrochina, 4.1%; China Merchants Bank, 4.1%; and China Life Insurance, 4.1%.

The fund’s holdings give it the following industry breakdown: Financials, 53.9%; Telecommunications, 18.0%; Oil and Gas, 14.8%; Basic Materials, 10.3%; and Industrials, 2.2%; The ETF has an expense ratio of 0.72%.

China’s economy grew at a rate of 9.2% in 2011. It will likely slow somewhat, but the Chinese economy is still forecast to grow by 8.6% in 2012.

iShares FTSE/Xinhua China 25 Index Fund is a buy for safety-conscious investors who are willing to accept some risk.

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