This Hong Kong ETF is a gateway to China

Article Excerpt

Hong Kong’s sound infrastructure—physical, administrative and financial—positions it as a gateway for foreign companies and investors seeking access to China. But those favourable factors also let Chinese companies gain easy access to international capital through Hong Kong’s highly developed financial markets. Here is one ETF that provides exposure to top public companies domiciled in this autonomous Chinese territory. ISHARES MSCI HONG KONG ETF $25.42 (New York symbol EWH; TSI Network ETF Rating: Aggressive; Market cap: $2.8 billion) tracks the performance of large and mid-cap Hong Kong-domiciled and listed companies. Financial companies account for 67.4% of its assets, while Utilities (10.0%), Consumer Cyclicals (8.7%), and Industrials (7.9%) are other key segments. The ETF holds a portfolio of 47 stocks; the top 10 stocks make up a sizeable 60.4% of the fund’s overall assets. Those top holdings include AIA Group (financial services, 21.6%), Hong Kong Exchanges and Clearing (financial services, 7.2%), CK Hutchison Holdings (industrials, 5.0%), Sun Hung Kai Properties (real estate, 4.8%), Link Real Estate Investment Trust (4.3%),…