ETF Trends dug up a news item that Claymore has filed for three narrow based China ETFs; one for technology, one for consumer (both staples and discretionary) and the most interesting (to me) filing is for infrastructure.
My preferences for China have long been to avoid financials and anything to do with exporters. The story I believe is what is happening on the ground in China as the country modernizes and more people ascend to a middle class lifestyle. For now this has lead me to China Mobile (CHL) and I recently added iShares Emerging Markets Infrastructure Fund (EMIF).
I also think energy is a good way to add exposure either with one of the oil majors or one of the specialized energy ETFs with a lot of China in it. I don't have that exposure currently but I do think that it is part of the investment solution. A point here that I have made repeatedly is that these are areas where money must (IMO) be spent. Materials companies could also be a way to add China, Jiangxi Copper (JIXAY) comes to mind, but that sector is a great way to access many countries so I tend to want to save that sector for places other than China.
For an inkling of what the Claymore infrastructure might hold you can look under the hood of EMIF which is 36% China/Hong Kong. It has Chinese toll roads, utilities, an airport, sea port and a couple of energy related names.
The other ETF item is that Grail Advisors is coming back with four new actively managed ETFs. They listed the Grail American Beacon Large Cap Value ETF (GVT), an actively managed product, which has been out for about three months and has done a hair better than the S&P 500 in that time.
I will probably do some sort of write up on them for theStreet.com but I just can't envision too many people caring about these.
A coupe of other quick items. Have you seen the Lind Waldock commercial where the guy says that when he can't sleep he trades S&P futures? That is wrong on so many levels. Have we learned nothing? Lastly, with all the articles out these days talking about having more bonds than equities just remember that treasuries are much closer to their highs, much closer, than equities.
Wikinvest Wire
7 comments:
You mean I need to stop trading S&P futures on night when I can not sleep???
EMIF owning a sea port is not exactly correct. Cosco is more like related services as opposed to an actual port.
I like the infrastructure idea...thanks! Also like the EWA & EWZ story.
have you considered powershares emerging markets infrastructure - symbol PXR? I like it for the same reasons.
isnt PXR mostly mining stocks? EMIF is not mining stock heavy, no mining exposure really
nope - mostly construction and materials - top holdings include Vale, ABB, Mechel OAO. 15% china, 12% brazil, 9% south africa, and so on. can check it out on invescopowershares.com
i guess i view PXR differently than you. the fund is 47% materials. VALE (client holding) and Mechel are both mining stocks.
compare it to materials related ETFs and it tracks closely.
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