5/5 Investment time: I'm looking for a mutual fund that is the best
approximation of a "Chinese S&P500". Does such a thing exist?
Ideally the fund would be based in the US so that it's subject to US
reporting requirements.
\_ No. Most Chinese companies are not really in the stock market
yet, and those that do are so-called "Red Chip" stocks that
don't really give you many shreholder rights. Stick to Hong
don't really give you many shareholder rights. Stick to Hong
Kong and Taiwan for now.
\_ I did some more research and found that FXI is probably
the closest to what you want. It is 25 red chip and H
series shares traded on the Hong Kong stock exchange.
But the Red Chip stocks are all minority shares in
companies run by the Chinese government.
\_ pp is right. china is doing well, but chinese firms are
not well regulated and can steal your money. There are
a couple of china mutual funds like MCHFX, but they have
not been performing as well as the Pacific ex-Japan funds,
which benefit from China's growth but do not have the
drawbacks of investing directly in China's companies
\_ I'd recommend Vanguard's Emerging Markets Stock Index Fund. As of
March, the top five countries in its holdings by percentage were:
Korea: 20.2%
Taiwan: 14.8%
South Africa: 11.5%
Brazil: 11.0%
China: 8.4%
Thus, taken together, China and Taiwan represent over 1/5 of the
entire fund's holdings. -dans |
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