When It Comes to China ETFs, Best Do Your Homework

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Received a note from our long-time mutual fund correspondent Stan Luxenberg, who writes:

"With the outlook for China improving recently, investors have been pouring into iShares FTSE China 25 ETF. But the ETF can be risky because it has 58% of its assets in financials. At a time when Chinese banks are loaded with debt, it makes little sense to overweight financials. For a more diversified approach, try an actively managed fund like Mathews China Dividend. The Matthews fund does not rely on financials, and the active fund has shined in downturns. ETF investors may prefer SPDR S&P China, which has 29% of assets in China." 

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REP. Editor-in-Chief David Aldo Geracioti on the business of Wall Street from a free-market perspective.

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David Aldo Geracioti

Is the editor-in-chief of REP. magazine.  He is also a devotee of the Austrian School of Economics leading lights Ludwig von Mises, Friedrich von Hayek, Murry Rothbard and to other thinkers in...
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