Investment In China. Where Do I Start?


#1

I have been pretty interested in allocating a certain portion of my portfolio to China. Things look very rocky for the Chinese in the short-run, in the long - run however China looks like America did 60-70 years ago…

Interested in

• ETFs

• ETPs

• Index Funds

• x3 Leveraged ETFs

Personally, my main pick would be the Index Fund by a long shot. Here’s why!


#2

China is an interesting one. If you want to know how the China story will play out in the short-run, I would recommend Crescat Capital’s letters. The fund manager Kevin Smith runs a small fund, but Crescat is amongst the best performing funds in the world… Anyway - look it up!

Index Funds
At the moment, the only proper index funds available is Vanguard EM fund. This fund tracks the performance of equities in emerging markets.

The fund invests in all emerging markets with China being the leader. See a list of the countries below:

China 32.6%
Taiwan 14.4%
India 11.8%
South Africa 7.9%
Brazil 7.7%
Thailand 3.8%
Russia 3.6%
Malaysia 3.3%
Mexico 3.3%
Indonesia 2.4%
Philippines 1.5%
Chile 1.4%
Poland 1.4%
Turkey 1.2%
United Arab Emirates 0.8%
Qatar 0.6%
Colombia 0.5%
Greece 0.4%
Hungary 0.4%
Peru 0.3%
Czech Republic 0.2%
Egypt 0.2%
Pakistan 0.2%
Other 0.0%
United Kingdom 0.1%
Hong Kong 0.0%
Korea 0.0%
Singapore 0.0%
Switzerland

Everything about this fund looks great:

-it costs .32% p/a
-it has has roughly $73 billion assets under mangement…

The only problem is that it has such little exposure to China. Ideally, I would like a fund geared entirely towards China and nowhere else.

You can invest in China ETFs such as:

My issue is that I just don’t trust ETFs or one company enough to allocate a significant amount of money towards their businesses - for me I would rather stick to vanguard until they produce an index fund which is geared entirely towards Chinese stocks

And if your listening Mr Bogle, throw in an all China index fund as well!