Two China ETFs for long-term gains

Article Excerpt

Chinese stocks are down roughly 12% since November 2010. That’s largely because investors fear that interest-rate increases designed to slow inflation will hurt the country’s economic growth. However, the long-term outlook for China, and Chinese stocks, is bright. And one of the best ways for investors to tap into that growth is through low-fee exchange-traded funds (ETFs). Here are two Chinese ETF recommendations. One invests in all of the publicly traded Chinese stocks available to foreign investors. The other holds small-cap Chinese stocks. SPDR S&P CHINA ETF $75.92 (New York Exchange symbol GXC; buy or sell through brokers; www.spdrs.com), 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 to foreign investors. Right now, SPDR S&P China ETF holds 147 stocks. The $669.0-million fund’s top holdings are: China Construction Bank, 7.6%; China Mobile, 6.5%; Industrial & Commercial Bank of China, 5.3%; CNOOC Ltd., 4.8%; Baidu…