Topic: How To Invest

ISHARES FTSE/XINHUA CHINA 25 INDEX FUND $38.90 – New York Exchange symbol FXI

ISHARES FTSE/XINHUA CHINA 25 INDEX FUND $38.90 (New York Exchange 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 $8.2-billion fund’s top holdings are China Mobile, 10.1%; China Construction Bank, 9.6%; Industrial & Commercial Bank of China, 8.5%; China Life Insurance, 7.1%; Bank of China, 6.2%; China Merchants Bank, 4.1%; China Petroleum & Chemical, 4.0%; PetroChina, 4.0%; Ping An Insurance Group, 4.0%; and CNOOC Ltd., 3.9%.

The fund’s holdings give it the following industry breakdown: Financials (46.8%), Telecommunications (17.8%), Oil and Gas (11.8%), Basic Materials (11.6%), Industrials (8.7%), Utilities (1.8%) and Consumer Services (1.6%).

iShares FTSE/Xinhua China 25 Index Fund was launched on October 5, 2004. It trades at a 1.3% discount to its net asset value. The ETF has a 0.73% MER. The dividend yield is 1.1%.

iShares FTSE/Xinhua China 25 Index Fund is a buy for aggressive investors.

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