iShares FTSE Xinhua China 25 Index Fund (FXI)

[stocktrademan]

China's large cap ETF, aka a proxy for their stock index, looks like a buy currently on the weekly chart. Buy the low and then check back in a couple of months perhaps. Or investigate using your own research, finding Chinese stocks that fit the overall cohesiveness of their market currently, accepting more risk for reward. However that is not necessary and a misnomer technique really.

The misunderstanding is the assumption that reward and risk are equivalent and in competition. Money changes everything. Big money buying index ETFs is less risky than picking stocks. The index ETFs are diversifying to spread risk. This is similar to insurance. Insurance was borne in China. If you have a million dollars you will likely safely make more buying the Index ETF instead of spreading out to certain stocks, not only because of commissions but also event risk for the few companies, instead of an index that accepts all the stocks risks.



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