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."