China ETF - Be aware

[GoFlyKiteNow]

Don't Buy The Chinese ETF Hype
http://www.forbes.com/2006/03/13/china-fxi-christy-in_jc_0314soapbox_inl.html

John Christy, Forbes International Investment Report
03.14.06, 6:00 AM ET

New York - You need to be extra careful in China these days, since there is so much hype and hyperbole surrounding this market.

One of the arguments making the rounds involves an exchange-traded-fund called the iShares FTSE Xinhua China 25, better known by its ticker: FXI. This fund, its boosters say, is a great way for small investors to get broad exposure to China with one simple, low-cost trade.

I can't argue with FXI's cost or simplicity. And since FXI has risen nearly 20% year-to-date, I can't argue with its performance at this juncture either. Indeed, if you happen to own FXI already and it is making money for you, I'm not going to tell you to sell; let your profits run. But I will say this, which I am borrowing from Hal Holbrook's character, Lou Mannheim, in Oliver Stone's film Wall Street: "Enjoy it while it lasts, kid. 'Cause it never does."

This is the year of the dog in the lunar (Chinese) calendar. FXI is a dog, and a bad-smelling one at that. Whether you own this fund now or you are considering investing in it, do yourself a favor.

Get a list of the index's 25 members from www.ishares.com. Next, fire up Google (nasdaq: GOOG - news - people ), or perhaps I should say baidu.com (nasdaq: BIDU - news - people ) in this case, and see what you can learn about all of them.

Warning: this exercise is akin to a three-hour tour of an old-time Chicago sausage factory. If you can still eat FXI's "sausage" afterward, enjoy. Your stomach is much stronger than mine.

 

[po2wq]

China ETF - Be aware ...

china etf b ware ...

 

[longbow]

But then this report is from March 2006!!??

If you had bought FXI then you would be at about the same price today - in fact you would have done much better then Dow 30 or most US blue chip companies. Perhaps writer was smoking something when writing this report. Reminds me of Gordon Chang and his prediction of total meltdown of Chinese banks in 2006 (same time frame too).

Take a look.

http://finance.yahoo.com/echarts?s=FXI#symbol=FXI;range=5y

You can never be too sure when investing in funds. Always check the type of fund that you are investing in. Check on the load or rather charges.

Look what happen to investors of Madoff.

Don't Buy The Chinese ETF Hype
http://www.forbes.com/2006/03/13/china-fxi-christy-in_jc_0314soapbox_inl.html

John Christy, Forbes International Investment Report
03.14.06, 6:00 AM ET

New York - You need to be extra careful in China these days, since there is so much hype and hyperbole surrounding this market.

One of the arguments making the rounds involves an exchange-traded-fund called the iShares FTSE Xinhua China 25, better known by its ticker: FXI. This fund, its boosters say, is a great way for small investors to get broad exposure to China with one simple, low-cost trade.

I can't argue with FXI's cost or simplicity. And since FXI has risen nearly 20% year-to-date, I can't argue with its performance at this juncture either. Indeed, if you happen to own FXI already and it is making money for you, I'm not going to tell you to sell; let your profits run. But I will say this, which I am borrowing from Hal Holbrook's character, Lou Mannheim, in Oliver Stone's film Wall Street: "Enjoy it while it lasts, kid. 'Cause it never does."

This is the year of the dog in the lunar (Chinese) calendar. FXI is a dog, and a bad-smelling one at that. Whether you own this fund now or you are considering investing in it, do yourself a favor.

Get a list of the index's 25 members from www.ishares.com. Next, fire up Google (nasdaq: GOOG - news - people ), or perhaps I should say baidu.com (nasdaq: BIDU - news - people ) in this case, and see what you can learn about all of them.

Warning: this exercise is akin to a three-hour tour of an old-time Chicago sausage factory. If you can still eat FXI's "sausage" afterward, enjoy. Your stomach is much stronger than mine.

 

[Watchman]

The Chinese bubble is growing big everyday !