Two Chinese ETFs for long-term growth

Article Excerpt

The long-term outlook for China, and Chinese stocks, is bright. And one of the best ways for investors to tap into that growth is through low-fee exchange-traded funds (ETFs). Here are two Chinese ETF recommendations. One invests in all of the publicly traded Chinese stocks available to foreign investors. The other holds small-cap Chinese stocks. SPDR S&P CHINA ETF $83.37 (New York Exchange symbol GXC; buy or sell through brokers; www.spdrs.com), is an exchange-traded fund that aims to track the S&P China BMI Index. This index is made up of all of the publicly traded Chinese stocks that are available to foreign investors. Right now, SPDR S&P China ETF holds 147 stocks. The $730.3-million fund’s top holdings are: China Construction Bank, 7.4%; China Mobile, 6.8%; Industrial & Commercial Bank of China, 5.2%; Bank of China, 4.4%; China Life Insurance, 4.4%; CNOOC Ltd., 4.2%; Baidu Inc., 4.0%; PetroChina, 3.4%; Tencent Holdings Ltd., 2.6%; and China Petroleum & Chemical, 2.2%. The fund’s…