Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you expect China-based stocks to prosper over time as the country's economy develops, the SPDR S&P China ETF
ETFs often sport lower expense ratios than their mutual fund cousins. The China ETF's expense ratio -- its annual fee -- is 0.59%, which is a bit higher than that of many ETFs, but also significantly lower than that of the typical stock mutual fund.
This ETF has performed reasonably well, outperforming its benchmark over the past five years with some wild swings, as you'd expect. As with most investments, of course, we can't expect outstanding performances in every quarter or year. Investors with conviction need to wait for their holdings to deliver.
With a low turnover rate of 9%, this fund isn't frantically and frequently rejiggering its holdings, as many funds do.
What's in it?
Several China-based companies had strong performances over the past year. NetEase
Other companies didn't do as well last year, but could see their fortunes change in the coming years. Chinese oil giant CNOOC
Then there's search-engine giant Baidu
The big picture
A well-chosen ETF can grant you instant diversification across any industry or group of companies -- and make investing in and profiting from it that much easier.
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