Two low-cost ways to invest in China

Article Excerpt

Chinese stocks have fallen about 10% since the start of this year, even though China’s economy continues to grow rapidly. Lower U.S. markets are part of the reason for the drop, but investors also worry that the Chinese government may raise interest rates to slow inflation. That could dampen 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 new recommendations in Chinese ETFs. One holds the 25 largest Chinese stocks. The other invests in all of the publicly traded Chinese stocks available to foreign investors. ISHARES FTSE/XINHUA CHINA 25 INDEX FUND $38.90 (New York Exchange symbol FXI; buy or sell through brokers) is an ETF that aims to track the FTSE/Xinhua China 25 Index, which is made up of the 25 largest and most liquid Chinese stocks. All of the stocks in the index trade on the Hong…

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