Strong investor interest in China, whose economy grew 11.9% in the first quarter of 2010 compared to a year earlier, should help AgBank’s initial public offering (IPO) raise $22.1 billion U.S. That would make it the largest IPO in world stock market history, topping Industrial & Commercial Bank of China, which raised $21.6 billion U.S. in 2006.

AgBank is the latest in a series of big world stock market IPOs from Asian and emerging markets this year. The world’s 10 biggest IPOs in 2010 include firms from China, Russia, Poland and India. The U.S. is noticeably absent from the list, and only one western European firm (from Spain) was included.

Investing in Agricultural Bank of China is not without risk

AgBank could well continue to prosper along with China’s economy, but the stock does entail definite risks.

For example, AgBank is mainly based in rural China. Rural-based banks generally face higher risks and lower returns than urban banks because rural clients often have less collateral for loans, and rural areas tend to have less stable employment than cities.

As well, like many Chinese banks, AgBank likely has a large amount of troubled loans on its books. That could hurt the bank if the Chinese government raises interest rates in the coming months to slow inflation.

Why new issues — especially foreign new issues — expose investors to extra risk

More generally, AgBank exposes investors to new-issue risk. That is, most new issues come to market when it’s a good time for the company and/or its insiders to sell, but that’s not necessarily a good time for you to buy. (For example, Chinese banks are attracting a lot of investor attention right now, mainly because of optimistic forecasts about the country’s economy.)

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New stock issues start out with a big marketing push. But when the initial hoopla ends, hidden risks can emerge. This can spur deep price declines in the new issue that go on for years.

Foreign new issues also increase your risk because you have to deal with exchange rates, foreign stock-exchange rules or language barriers. As well, many foreign countries, including China and other emerging markets, have weaker investor-protection laws than Canada and the U.S., and may also have less commitment to openness, fairness and so on.

This exchange traded fund offers a safer way of world stock market investing in China

Instead of foreign new issues like Agricultural Bank of China, we think you’re far better off investing in China through exchange-traded funds (ETFs), like the iShares FTSE/Xinhua China 25 Index Fund (symbol FXI on New York), one of the ETFs we cover in our Canadian Wealth Advisor newsletter.

High-quality international ETFs let you make world stock market investments with greater safety, and without the complications of directly investing in a foreign stock market.

iShares FTSE/Xinhua China 25 Index Fund aims to track the FTSE/Xinhua China 25 Index, which is made up of the 25 largest and most liquid Chinese stocks. All of the stocks in the index trade on the Hong Kong exchange. Some also trade as American Depositary Receipts (ADRs) on the New York exchange.

Plus, if you want exposure to AgBank, the stock will likely be added to the exchange-traded fund’s holdings soon after it begins trading on July 15.

Right now, the fund’s top holdings are China Mobile, 10.3%; China Construction Bank, 9.4%; Industrial & Commercial Bank of China, 8.0%; China Life Insurance, 6.8%; CNOOC Ltd., 6.1%; China Unicom Hong Kong, 5.0%; Ping An Insurance Group, 4.4%; China Petroleum & Chemical, 4.1%; PetroChina, 4.0%; and Bank of China, 4.0%.

The fund’s holdings give it the following industry breakdown: Financials, 45.6%; Telecommunications, 19.2%; Oil and Gas, 14.2%; Basic Materials, 9.4%; Industrials, 7.9%; Consumer Services, 1.8%; and Utilities, 0.8%. The ETF has an expense ratio of 0.73%. The dividend yield is 2.3%.

You can get our full analysis of iShares FTSE/Xinhua China 25 Index Fund and a number of other ETFs suitable for international investing in Canadian Wealth Advisor. Click here to learn how you can get one month free when you subscribe today.

Plus, you get all 4 of my investment advisories, including Wall Street Stock Forecaster, our newsletter that covers the U.S. markets. (See below for more on one of the global stock market investments we cover in Wall Street Stock Forecaster. The stock has risen over 57% in the past year — and we think it could go even higher.)

So you can get a sense of how the service works, I’d like to share a recent question from an investor who is interested in global stock market investing through American Depositary Receipts (ADRs).

Q: Pat: Would you please explain what an “American Depositary Receipt” is?

A: An American Depositary Receipt, or ADR, is a certificate that represents a foreign stock that trades in the U.S. Banks and brokerage firms in the U.S. issue or sponsor ADRs, and investors buy and sell them on U.S. stock markets, just like regular stocks.

One ADR may represent one or more shares of the foreign stock. But if the stock is expensive, the ADR may represent a fraction of a share. That way, the ADR will start trading at a moderate price, or be in range of similar stocks on the exchange where it trades. The price of an ADR usually stays close to the price of the foreign stock in its home market.

Foreign firms benefit from ADRs in a number of ways: They let these companies offer dollar-denominated shares and raise capital in the U.S. Issuing ADRs also raises a non-U.S. firm’s liquidity and visibility, in the United States and around the world.

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ADRs make global stock market investing much easier and safer for individual investors. The foreign company must provide detailed financial information to U.S. regulators, and to the sponsor bank or broker. Since ADRs trade on U.S. stock market, you don’t have to worry about exchange rates, foreign stock-exchange rules, or language barriers.

Price information is readily available, and transaction costs are lower. Trades will clear and settle in U.S. dollars. As well, the depositary bank or broker will convert any dividends or other cash payments into U.S. dollars before it sends them on to you.

Philips: a broad-based electronics manufacturer that trades as a New York ADR

We cover a number of stocks that trade as ADRs in our Wall Street Stock Forecaster newsletter. Among these global stock market investments is Netherlands-based Philips Electronics (symbol PHG on New York).

Philips gets 40% of its revenue by making consumer electronics, such as television sets and DVD players. It also makes health-care products, such as X-ray and magnetic-resonance scanners (35% of revenue), and lighting products (25%).

Thanks to the improving global economy, all of Philips’ businesses are starting to see rising demand. In particular, Philips expects strong sales of lights that use light-emitting diodes (LEDs) in 2010. These lights use 80% less electricity than regular light bulbs, and last much longer. That’s why developing countries like India are turning to LED lights to cut their power use.

President Obama’s health-care plan imposes new fees on medical-device makers. That will make Philips’ medical equipment more expensive in the U.S. However, demand for these products should rise as the population ages and the formerly uninsured take advantage of the new medical benefits.

If you have investment-related questions, or if you’d like to ask me about stocks you’re considering buying (or selling), you should join my Inner Circle service. Click here to learn more.

India’s gain was largely the result of a 16.3% increase in manufacturing, as the country continued its faster-than-expected recovery from the global economic slowdown.

India’s strong economic performance is expected to continue: the World Bank recently projected that the country’s economy could grow at an annual rate of 8% to 9% over the next two years.

An easy way to invest in India with less risk

Despite its breathtaking growth, India remains a difficult place for direct world stock market investing. If you directly invest in foreign companies, including Indian stocks, you’ll have to worry about currency exchange rates, foreign stock exchange rules and foreign languages. As well, price information is not readily available, and transaction costs are high.

That’s why we think you’re far better off investing in India and other overseas markets through international exchange-traded funds (ETFs). High-quality international ETFs let you make international investments with greater safety, and without the complications of directly investing in a foreign stock market.

(In a recent issue of our Canadian Wealth Advisor newsletter, we updated our buy/sell/hold advice on iShares S&P India Nifty 50 Index Fund (symbol INDY on Nasdaq), an exchange traded fund that tracks some of the largest, most liquid Indian stocks. See below for further details.)

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Exchange-traded funds mirror the performance of a stock-market index or sub-index. They hold a more-or-less fixed selection of securities that are chosen to represent the holdings that go into the calculation of the index or sub-index. We recommend a number of carefully selected ETFs in Canadian Wealth Advisor.

ETFs trade on stock exchanges, just like stocks. Investors can buy them on margin or sell them short. The best ETFs offer well-diversified, tax-efficient portfolios with exceptionally low management fees. They are also very liquid.

World stock market: This ETF holds some of India’s top stocks

iShares S&P India Nifty 50 Index Fund is an ETF that aims to track the S&P CNX Nifty Index, which represents the 50 largest, most liquid Indian securities on the National Stock Exchange of India.

The fund’s top holdings are Reliance Industries (conglomerate), 11.4%; Infosys Technologies (software), 8.6%; ICICI Bank, 7.0%; Larsen & Toubro Ltd. (conglomerate), 6.4%; Housing Development Finance, 4.8%; ITC Ltd. (conglomerate), 4.5%; State Bank of India, 4.1%; Bharat Heavy Electricals, 2.6%; and Tata Consulting Services (information technology), 2.4%.

The fund’s industry breakdown includes: Banks, 17.8%; Computers: Software, 13.1%; Refineries, 11.9%; Steel and Steel Products, 5.3%; Finance: Housing, 4.8%; Power, 4.6%; Cigarettes, 4.5%; Electrical Equipment, 4.2%; Automobiles, 4.2%; and Telecommunication Services, 3.8%. The ETF has an expense ratio of 0.89%.

You can get our full analysis of the iShares Nifty 50 Index Fund and a number of other ETFs suitable for world stock market investing in Canadian Wealth Advisor. Click here to learn how you can get one month free when you subscribe today.

Right now, the European Union and International Monetary Fund are working on a bailout of Greece. However, negotiations are moving slowly, mainly because Germany, which would shoulder most of the bailout, is insisting that the Greek government sharply cut its spending before any restructuring can go forward.

Most European economies still need considerable reform

We’ve long recommended that Canadian investors be very selective about global stock market investing in Europe, and limit their European holdings to a smaller portion of their portfolios, no more than 10%, say.

As we said, many of Europe’s major economies, especially the PIIGS countries, still need major structural reforms. These reforms include cutting social spending and removing outmoded job-protection laws, plus measures to lower both business and personal tax rates. That dramatically limits their appeal for global stock market investing.

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Look closer to home for lower-risk gains

We continue to recommend that most investors hold the bulk of their portfolios in Canadian stocks. That’s because, unlike many European economies, Canada has a number of strengths that have helped it weather the economic downturn — and put its economy in position to profit as the global economic recovery gains steam.

For one, the stability of Canada’s banking system has caught international attention: The big-five Canadian banks had limited exposure to the complicated, risky financial products that brought down many international banks. Canada’s banks have long demonstrated an ability to identify and stay out of these types of arrangements.

That’s another good reason why we continue to recommend all five big Canadian bank stocks in our investment services and newsletters.

As well, Canada cut its corporate tax rate to 31.32% in 2009. That’s a 0.4% decrease. This has further served to support the country’s economy, and helped attract jobs and economic growth.

To top it off, Canadian investors benefit from the dividend tax credit. In contrast, you pay tax at the same rate as ordinary income on the full amount of your foreign dividends, including Europe.

A lower-risk way of global stock market investing in Europe

If you want to do some global stock market investing in Europe, we think the best way to do so is through exchange-traded funds (ETFs). We cover a carefully selected group of ETFs in Canadian Wealth Advisor, our newsletter for safety-conscious investors. One of them is the IShares MSCI Germany Fund (symbol EWG on New York).

Exchange traded funds are set up to mirror the performance of a stock-market index or sub-index. They hold a more-or-less fixed selection of securities that represent the holdings that go into the calculation of the index or sub-index. Exchange traded funds trade on stock exchanges, just like stocks.

The IShares MSCI Germany Fund’s top holdings are Siemens AG (engineering conglomerate), 10.3%; E.ON AG (energy), 8.9%; Allianz (insurance), 7.0%; BASF (chemicals), 7.0%; Bayer AG (diversified chemicals), 6.9%; Deutsche Bank AG, 5.3%; Daimler AG (automobiles), 5.2%; SAP AG (software), 4.8%; Deutsche Telekom, 4.6% and RWE AG (energy and waste disposal), 4.3%.

Exports account for around 45% of Germany’s economy, so it needs a continued global recovery to sustain its growth. Even though many European countries are struggling (including Portugal, Italy, Ireland, Greece and Spain), the German economy is steadily recovering.

You can get our full analysis of this exchange-traded fund and a wide range of other investments, including income trusts and tax-advantaged investments, in Canadian Wealth Advisor. What’s more, you get one month free when you subscribe today. Click here to learn how.

That’s because this type of revenue helps cut a stock’s risk. It also cuts its exposure to the ups and downs of the economic cycle.

This Wall Street stock’s shift has helped steady its revenue

International Business Machines Corp. (symbol IBM on New York) provides an example of such a company. Moreover, it just signed a long-term alliance with another firm that could further add to its appeal. That’s why we updated our buy/sell/hold advice on IBM in a recent Wall Street Stock Forecaster hotline.

At first glance, you may not think of IBM as a company that benefits from long-term contracts. After all, it’s best known for making large mainframe computers and other hardware.

However, in the past few years IBM has steadily moved away from these products and toward providing computer services and selling software. These activities generate higher profit margins, and help businesses cut costs and improve productivity. As a result of this shift, software and services now account for more than 80% of IBM’s revenue and earnings.

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IBM recently formed a long-term alliance with Broadridge Financial Solutions Inc. (symbol BR on New York), another stock we cover in Wall Street Stock Forecaster.

Broadridge serves the investment industry in three main areas: investor communications, securities processing and transaction clearing. The company mails and processes 70% of all proxy votes.

Under the terms of the 10-year deal, IBM will assume responsibility for all of Broadridge’s computer networks. IBM’s expertise will help Broadridge make its transaction-processing services more efficient. This alliance will also make it easier for Broadridge to develop new services.

Wall Street stocks are among the best cross-border deals

With the Canadian dollar now hovering near parity with the U.S. dollar, there’s never been a better time to add high-quality Wall Street stocks to your portfolio. If you’re a conservative investor, you could choose from the 49 companies we recommend in Wall Street Stock Forecaster’s Conservative Growth Portfolio.

We continue to recommend that you maintain a reasonable portion of your portfolio in well-established Wall Street stocks. That’s because, as IBM demonstrates, the U.S. market features major multinational opportunities that simply aren’t available anywhere else. Moreover, many U.S. firms are unique world leaders.

Of course, no one can consistently predict foreign-exchange rates, and no one knows how long the Canadian dollar will remain at its current high level. But if you’re thinking of adding more U.S. stocks to your portfolio, now is a great time to get started.

We’ll continue to monitor IBM’s ongoing shift and update our buy/sell/hold advice accordingly in Wall Street Stock Forecaster. We’ll also keep you up to date on the very best U.S. investment opportunities for Canadian investors. Best of all, you get one month of Wall Street Stock Forecaster free when you subscribe today. Click here to learn how.

However, quality varies. The investment industry has created all sorts of ETFs. All too many exist to tap into popular, but risky, themes and fads, so you need to be highly selective with your ETF holdings.

Here are five foreign ETFs we like:

ISHARES MSCI JAPAN INDEX FUND $10.60 (American Exchange symbol EWJ; buy or sell through a broker) is an exchange-traded mutual fund that tries to match the return of the Morgan Stanley Capital International (MSCI) Japan index.

The fund’s top holdings include: Toyota Motor, 5.0%; Mitsubishi UFJ Financial Group, 2.9%; Honda Motor, 2.6%; Canon, 2.0%; Sumitomo Mitsui Financial, 1.9%; Takeda Pharmaceutical, 1.6%; Tokyo Electric Power, 1.6%; Sony Corp., 1.6%; Mitsubishi Corporation, 1.5%; and Nintendo Co., 1.4%.

The fund’s industry breakdown is as follows: Consumer Discretionary, 19.7%; Industrials, 19.1%; Financials, 17.0%; Information Technology, 13.7%; Materials, 8.0%; Utilities, 6.0%; Health Care, 5.9%. Consumer Staples, 5.5%; Telecommunication Services, 3.7%; and Energy, 1.2%.

iShares MSCI Japan Index Fund was launched on March 12, 1996. Its expense ratio is 0.56%.

Japanese gross national product (GNP) shrank 5% last year. However, the country’s economy now seems to be strengthening. Industrial production fell 0.9% in February. This, though, was the first monthly decline in a year, and industrial production appears to have grown in March. Moreover, February consumer spending was up for the fifth straight month. The unemployment rate was unchanged at 4.9%. It dropped below 5% in January for the first time since March 2009. The key Nikkei index is now above 11,000 for the first time since October 2008.

iShares MSCI Japan Index Fund is a good way for safety-conscious investors to buy Japanese stocks.

iShares MSCI Japan Index Fund is a buy.

ISHARES MSCI EMERGING MARKETS INDEX FUND $43.36 (New York Exchange symbol EEM; buy or sell through brokers), is an exchange-traded fund that aims to track the MSCI Emerging Markets Index.

The fund’s geographic breakdown includes: Brazil, 14.7%; South Korea, 12.3%; China, 10.6%; Taiwan, 10.5%; South Africa, 8.0%: Hong Kong, 6.9%; India, 6.5%; Russia, 6.3%; Mexico, 4.9%; and Israel, 3.3%.

iShares MSCI Emerging Markets Index Fund’s top holdings are Samsung Electronics, 3.2%; Taiwan Semiconductor (Taiwan: computer chips), 2.4%; Petrobras (Brazil: energy), 2.4%; Banco Itau Holding Finance (Brazil: banking), 2.2%; Posco (steel), 1.9%; China Mobile (China: wireless), 1.9%; Vale SA (Brazil mining), 1.8%; Gazprom (Russia: gas utility), 1.6%; and Banco Brandesco (Brazil: banking), 1.6%.

The fund’s industry breakdown is as follows: Financials, 24.5%; Energy, 14.8%; Materials, 14.4%; Information Technology, 14.3%; Telecommunication Services, 9.3%; Industrials, 5.8%; Consumer Discretionary, 5.1%; Consumer Staples, 5.1%; Utilities, 3.8%; and Health Care, 2.2%.

iShares MSCI Emerging Markets Index Fund was launched on April 7, 2003. The exchange-traded fund has an expense ratio of 0.72%.

iShares MSCI Emerging Markets Index Fund’s wide diversification among emerging markets tones down its risk, but emerging markets are still far more volatile and vulnerable to downturns than markets in the developed world.

iShares MSCI Emerging Markets Index Fund is a buy for aggressive investors.

ISHARES MSCI SOUTH KOREA INDEX FUND $51.65 (New York Exchange symbol EWY; buy or sell through brokers), is an ETF that aims to track the MSCI Korea Index. The index aims to capture 85% of the total market capitalization of the South Korean stock market. The other 15% is unavailable for investment, partly due to limitations on foreign ownership.

The fund’s top holdings are Samsung Electronics, 18.0%; Posco (steel), 7.6%; Hyundai Motor Co., 3.9%; Shinhan Financial, 3.7%; KB Financial Group, 3.5%; LG Electronics, 2.2%; Samsung Electronics preferred shares, 2.2%; LG Chemical, 2.2%; Hynix Semiconductor, 2.2%; and Korea Electric Power, 2.1%.

The fund’s industry breakdown is as follows: Information Technology, 28.5%; Financials, 16.0%; Industrials, 14.9%; Materials, 14.0%; Consumer Discretionary, 12.0%; Consumer Staples, 5.0%; Telecommunication Services, 3.4%; Energy, 2.4%; Utilities, 2.4%; and Health Care, 0.5%.

iShares MSCI South Korea Index Fund was launched on May 9, 2000. The exchange-traded fund has an expense ratio of 0.65%.

Cuts to interest rates and taxes, as well as government stimulus spending, are boosting the South Korean economy, which is the fourth largest in Asia.

As well, exports to China are rising. That’s helping offset lower exports to the U.S. and Europe. China is now South Korea’s biggest export market.

A continuing drawback to any South Korean investment is the country’s proximity of North Korea, with its nuclear weapons and seemingly unstable leader. So far, however, his bluster has stopped far short of any serious risk to the south.

iShares MSCI South Korea Index Fund is a buy for aggressive investors.

ISHARES MSCI GERMANY FUND $21.91 (New York Exchange symbol EWG; buy or sell through brokers) is an ETF that aims to track the MSCI Germany Index.

This index aims to replicate the performance of 85% of the total market capitalization of the German stock market. The remaining 15% is unavailable for investment, partly due to limitations on foreign ownership.

The fund’s top holdings are Siemens AG (engineering conglomerate), 9.6%; E.ON AG (energy), 9.4%; Bayer AG (diversified chemicals), 7.4%; Allianz (insurance), 7.1%; BASF (chemicals), 6.9%; Daimler AG (automobiles), 5.0%; SAP AG (software), 5.0%; Deutsche Bank AG, 4.8%; Deutsche Telekom AG, 4.7%; and RWE AG (energy and waste disposal), 4.6%.

The fund’s industry breakdown is as follows: Financials, 19.8%; Industrials, 14.4%; Utilities, 14.2%; Materials, 14.0%; Health Care, 11.6%; Consumer Discretionary, 11.2%; Information Technology, 6.0%; Telecommunication Services, 4.7%; and Consumer Staples, 4.1%.

The fund was launched on March 12, 1996. It has an expense ratio of 0.55%.

Exports account for around 45% of Germany’s economy, so it needs a continued global recovery to sustain its growth. Many European countries are struggling, including Greece, Spain and Portugal, but the German economy is steadily recovering.

iShares MSCI Germany Fund is a buy.

ISHARES MSCI CHILE INVESTABLE MARKET INDEX FUND $57.03 (New York Exchange symbol ECH; buy or sell through brokers), is an ETF that aims to track the MSCI Chile Investable Market Index. This index consists of stocks that are mainly traded on the Santiago Stock Exchange.

The fund’s top holdings are Empresas Copec SA (conglomerate), 13.4%; Enersis AS (electric power), 10.4%; Empresa Nacional de Electricidad (electric power), 9.9%; Empresas CMPC (pulp and paper), 8.9%; Quimiday Minera de Chile (mining), 6.3%; Cencosud SA (retailer), 5.6%; Banco Santander Chile (banking), 4.8%; Lan Airlines SA (Chilean national airline), 4.6%; CAP SA (iron-ore mining and steel), 4.4%; and Colbun SA (electric power), 3.7%.

The fund’s industry breakdown is as follows: Utilities, 27.9%; Materials, 20.5%; Industrials, 20.0%; Consumer Staples, 9.8%; Financials, 9.7%; Consumer Discretionary, 8.0%; Telecommunication Services, 2.6%; Information Technology, 1.0%; and Health Care, 0.3%.

iShares MSCI Chile Investable Market Index Fund was launched on November 12, 2007. The exchange-traded fund has an expense ratio of 0.65%.

Chile is the world’s biggest copper supplier. Asian countries are particularly large consumers of Chilean copper. The country prudently used high copper prices from 2006 to 2008 to pay off its foreign debt and save for an economic downturn. As a result, Chile was able to implement a big economic stimulus plan without taking on debt.

The stimulus measures included public-works projects, tax breaks for businesses and cash distributions to the country’s poorest citizens.

An 8.8-magnitude earthquake hit Chile on February 27. That will hurt the country’s short-term economic growth. As well, Chile’s continuing dependence on resources is somewhat of a drawback to investment in the country. However, the long-term outlook for Chile’s economy remains positive.

iShares MSCI Chile Investable Market Index Fund is a buy for aggressive investors.

The $373.6-million fund’s top holdings are Air China, 1.9%; Semiconductor Manufacturing, 1.8%; ZTE Corp., 1.8%; China Everbright, 1.7%; Shandong Wiegao Group Medical, 1.6%; PICC Property & Casualty, 1.6%; China Eastern Airlines, 1.5%; Weichai Power Co., 1.5%; Suntech Power Holdings, 1.5%; and China Resources Gas Group, 1.5%.

As China’s economy matures, and consumers feel more protected by the expanding social safety net, domestic spending should rise. This fund is well positioned to benefit from that trend.

Claymore/AlphaShares China Small Cap Index ETF was launched on January 30, 2008. The fund has an expense ratio of 0.70%. The dividend yield is 0.1%.

Claymore/AlphaShares China Small Cap Index ETF is a buy for aggressive investors.

You can lower your risk by sticking with American Depositary Receipts (ADRs). An ADR is an investment unit for foreign companies that trade on U.S. stock markets.

These units can represent fractions of shares, whole shares or multiple shares in the foreign company. They help investors simplify their international investing by letting them buy foreign shares on U.S. exchanges without the complications of foreign transactions.

They also help investors cut risk, because ADRs have to follow some U.S. Securities and Exchange Commission rules, as well as the rules of the U.S. stock exchange on which they trade.

Above all, we think the best way to invest in foreign markets is through the high-quality ADRs we recommend. Diageo is an excellent example.

The fund’s top holdings are China Mobile (China: wireless), Gazprom (Russia: gas utility), Samsung Electronics (South Korea: electronics), Teva Pharmaceutical Industries, America Movil SA de CV (Latin America: wireless), Petroleo Brasileiro SA (Brazil: oil and gas), China Construction Bank, Vale SA (Brazil: mining) and Industrial and Commercial Bank of China.

The $32.7-billion Vanguard Emerging Markets ETF’s largest holdings by country are: China (17.8%), Brazil (17.0%), South Korea (12.8%), Taiwan (11.3%), India (7.6%), South Africa (6.9%), Russia (6.5%), Mexico (4.4%), Israel (2.8%), Malaysia (2.7%), Indonesia (1.9%), Turkey (1.5%), Chile (1.5%), Thailand (1.4%), Poland (1.3%), Hungary (0.6%), Philippines (0.5%), Peru (0.5%), Czech Republic (0.4%), Colombia (0.3%) and Egypt (0.2%).

Vanguard Emerging Markets ETF is a buy for aggressive investors.

The $548.9-million fund’s top holdings are: China Mobile, 9.1%; China Life Insurance, 6.2%; Industrial & Commercial Bank of China, 5.6%; China Construction Bank, 4.8%; PetroChina, 4.5%; CNOOC Ltd., 4.0%; Tencent Holdings, 2.7%; China Petroleum & Chemical, 2.6%; Bank of China, 2.5%; and China Shenhua Energy, 2.4%.

The fund’s top industry holdings are: Financials (30.9%), Oil and Gas (16.5%), Telecommunications (11.6%), Industrials (11.4%), Information Technology (10.5%), Consumer Discretionary (7.0%), Basic Materials (5.1%) and Consumer Staples (4.4%).

SPDR S&P China ETF was launched on March 19, 2007. It trades at a 2.3% discount to its net asset value. The ETF has a 0.59% MER and yields 0.5%.

SPDR S&P China ETF is a buy for aggressive investors.