Topic: How To Invest

ISHARES FTSE/XINHUA CHINA 25 INDEX FUND $40.30 – New York Exchange symbol FXI

ISHARES FTSE/XINHUA CHINA 25 INDEX FUND $40.30 (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 fund’s top holdings are China Mobile, 10.1%; China Construction Bank, 9.1%; Industrial & Commercial Bank, 7.9%; China Life, 6.3%; Bank of China, 5.8%; Ping An Insurance, 4.6%; China Unicom Hong Kong, 4.3%; CNOOC, 4.3%; China Telecom, 4.2%; and China Merchants Bank, 4.1%.

The fund’s holdings give it the following industry breakdown: Financials, 47.1%; Telecommunications, 18.6%; Oil and Gas, 12.3%; Basic Materials, 11.0%; Industrials, 8.0%; Consumer Services, 2.1%; and Utilities, 0.8%. The ETF has an expense ratio of 0.73%. The dividend yield is 2.3%.

China’s economy continues to grow rapidly, and the long-term outlook for Chinese stocks is strong.

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

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