Two ETFs that focus on growing markets

Article Excerpt

ISHARES FTSE/XINHUA CHINA 25 INDEXFUND $41.85 (New York symbol FXI; buy or sell throughbrokers) is an ETF that aims to track the FTSE/XinhuaChina 25 Index, which is made up of the 25 largestand most liquid Chinese stocks. All of the stocks inthe index trade on the Hong Kong exchange. Somealso trade as American Depositary Receipts (ADRs)on the New York exchange.The fund’s top holdings are China ConstructionBank, 9.6%; China Mobile, 9.4%; Industrial &Commercial Bank, 8.8%; CNOOC, 6.5%; Bank ofChina, 6.2%; Agricultural Bank of China, 4.5%;China Overseas Land & Investment, 4.2%; ChinaPacific Insurance, 4.2%; China Petroleum andChemical; 4.1%; and PetroChina, 3.9%.The fund’s holdings give it the following industrybreakdown: Financials, 59.2%; Telecommunications,15.7%; Oil and Gas, 14.5%; Basic Materials, 8.9%;and Industrials, 2.1%. Its expense ratio is 0.74%.China’s economy grew at a rate of 9.2% in 2011.It likely slowed to 7.5% in 2012, but it is nowforecast to grow by 8.2% in 2013.iShares FTSE/Xinhua China 25 Index Fund is abuy for safety-conscious investors who are…