Topic: How To Invest

Pat: Chinese stocks keep going up. What’s the best way to invest in those stocks? Thanks.

Article Excerpt

iShares FTSE/Xinhua China 25 Index Fund, $46.35, symbol FXI on New York (Shares outstanding: 218.6 million; Market cap: $10.1 billion), is an exchange-traded fund (ETF) that aims to track the FTSE/Xinhua China 25 Index. This index is made up of the 25 largest and most liquid Chinese stocks. All of the securities in the index trade on the Hong Kong exchange. As well, some trade as ADRs on the New York exchange. The fund’s top holdings are China Mobile, 9.3%; China Construction Bank, 9.1%; China Life Insurance, 8.4%; Industrial & Commercial Bank of China, 7.3%; Bank of China, 6.1%; China Merchants Bank, 4.4%; China Shenhua Energy Co., 4.2%; Ping An Insurance Group, 4.2%, CNOOC Ltd., 4.0% and PetroChina, 4.0%. The fund’s industry breakdown is as follows: Financials, 47.0%; Telecommunications, 16.7%; Basic Materials, 12.2%; Oil and Gas, 11.8%; Industrials, 9.3%; Utilities, 1.9%; and Consumer Services, 1.1%. iShares FTSE/Xinhua China 25 Index Fund was launched on October 5, 2004. The ETF has a 0.74% expense…