5 China Stocks for Smart Investors

Oct 8, 2009, 4:00 am EST | By Jim Woods, Stocks & Markets Writer

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China Stock #5 – iShares FTSE/Xinhua China 25 (FXI)

If your investing proclivities point you away from stocks and toward exchange-traded funds (ETFs), then there is no reason for you to feel left
out of the China boom. My fifth and final irresistible China stock isn’t really a stock at all. Rather, it’s an ETF that’s pegged
to the performance of China’s biggest market index, the FTSE/Xinhua China 25.

This ETF is the iShares FTSE/Xinhua China 25 (FXI), and I like to compare this fund to investing
in the Chinese version of the Dow Jones Industrial Average. With FXI you are getting a virtual basket of the largest companies that trade in the Chinese
stock market. And while this basket of large-cap Chinese stocks hasn’t burned up the performance charts the way our previous picks have, it
still has given investors a 43% return year to date.

Not too shabby. You see, I knew you’d find China stocks irresistible.

Related Articles:

3 Reasons Why China Stocks Still Have Plenty of Room to Grow

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