TRADING TWO CHINAS

摘要

Even the most inobservant investors can spot the arrival of the Chinese New Year by the ubiquitous column in every financial journal declaring that "20XX Belongs to China" and telling you that you need to add exposure to the world's "largest untapped market." Why you need to buy tends to shift from one year to the next; maybe it's because MSCI will finally add mainland Chinese stocks to their EM index, or that debt-to-GDP is stabilizing but from our standpoint; the "why" doesn't really matter nearly as much as the "how." ETFs give investors an easy and affordable way to invest in overseas markets, but don't assume that because two funds are interchangeable just because both have China in their names.