Tap into Chinese growth with these ETFs

Article Excerpt

Chinese stocks have fallen about 13% since the start of this year, even though China’s economy continues to grow rapidly. Lower U.S. and European markets are part of the reason for the drop, but investors also worry that the Chinese government may raise interest rates and tighten bank lending to slow inflation and property speculation. That could weaken the country’s growth. However, the long-term outlook for China, and Chinese stocks, is strong. One of the best ways for investors to tap into that growth is through low-fee exchange-traded funds (ETFs). Here are our two Chinese ETF recommendations. One invests in all of the publicly traded Chinese stocks available to foreign investors. The other holds the 25 largest Chinese stocks. SPDR S&P CHINA ETF $68.56 (New York Exchange symbol GXC; buy or sell through brokers), is an exchange-traded fund that aims to track the S&P China BMI Index. This index is made up of all of the publicly traded Chinese stocks that are available…