iShares FTSE/Xinhua China 25 Index (ETF)
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3 Investing Takeaways From the Man Who Coined the Term BRIC
By Salvatore "Sam" Mattera - May 2, 2013 | Tickers: FXI, SPY, VGK
Brazil, India, Russia, China -- BRIC. Goldman Sachs’ Jim O’Neill is widely credited with inventing the acronym, which has become a common theme among global investors. Now heading into retirement, O’Neill has penned a farewell letter (via Zerohedge) -- from it, investors can glean a number of key takeaways.
Bigger isn't necessarily better
Since O’Neill coined the term, the BRICs have experienced tremendous economic growth. Russia’s GDP more »
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The Good Problems WeChat is Causing Tencent
By Peter Pham - April 24, 2013 | Tickers: CMGE, CHU, SOCL, FXI, MSFT, SINA
The Chinese internet giant Tencent Holdings (TCEHY.PK) introduced a blockbuster mobile chat application that is being perceived as a significant threat to the revenues of social networking firms, such as Sina (NASDAQ: SINA) Weibo as well as Chinese telcos such as China Mobile (NYSE: CHL) and China Unicom (NYSE: CHU). WeChat is doing now what Tencent’s QQ did about a year ago by eating massive amounts of the more »
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New Banking Rules Shake up Major Chinese ETFs
By Peter Pham - April 23, 2013 | Tickers: CHIX, FXI, MCHI, TCEHY.PK
When it comes to Chinese ETFs, the first name that pops up in an investor’s mind is the FTSE China 25 Index Fund ETF (NYSEMKT: FXI). With an enormous market cap of $7 billion, this ETF represents the blue chips of the Chinese economy, particularly its financial services sector. FXI is now changing its structure and becoming more diverse. But currently, investors looking for exposure towards large cap Chinese more »
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The Good Problems WeChat is Causing Tencent
By Peter Pham - April 23, 2013 | Tickers: CMGE, CHU, SOCL, FXI, MSFT, SINA
The Chinese internet giant Tencent Holdings (TCEHY.PK) introduced a blockbuster mobile chat application that is being perceived as a significant threat to the revenues of social networking firms, such as Sina (NASDAQ: SINA) Weibo as well as Chinese telcos such as China Mobile (NYSE: CHL) and China Unicom (NYSE: CHU). WeChat is doing now what Tencent’s QQ did about a year ago by eating massive amounts of the more »
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Headwinds for Chinese Equity Bourses
By Peter Pham - April 21, 2013 | Tickers: FXI, NKY, SPY
The selective tightening policy of the Chinese central bank has created headwinds for economic growth retarding the ability of the Chinese stock market to gain traction. The Chinese equity markets have experienced a methodical decline over the past 2-years, with minor corrections that have provided investors hope that the bear market has come to an end. Domestic investors have a few investment options other than real estate which has driven more »
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In Emerging Markets, the Smaller the Better
By Andrés Cardenal - March 7, 2013 | Tickers: HAO, FXI, EWZ, BRF, PBR
When investing, size matters. Small companies are usually assumed to be riskier than big ones, while on the other hand they offer higher potential for growth. Although this rule is quite easy to observe, and generally correct, emerging markets may be a remarkable exception to consider. As odd as it may seem, smaller companies in emerging markets may offer both higher growth and less risk than their bigger counterparts.
Politics more »
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Are ETF's Right for Long Term Investors?
By James Catlin - February 11, 2013 | Tickers: FXI, EWA, EWZ
Exchange Traded Funds (ETF's) are an investment tool often used to play broader macro economic trends. For those new to the concept, allow me to explain. ETF's are a basket of stocks with a specific investing goal that trade like a single stock. Some focus on industries like technology or health care. Others may focus on entire countries like Germany, South Africa, and Brazil. Because they are traded more »
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The Recent Rally in Chinese Stocks Bodes Well for this Hated Industry
By Justin Carley - January 16, 2013 | Tickers: VALE, FCX, FXI, KOL, BTU
As we start out 2013, things look pretty promising for equity markets. The U.S. equity market remains significantly undervalued, housing is firming, and the start of the great rotation out of bonds may soon be getting under way. While the U.S. remains well positioned for secular outperformance, this year may very well see strong cyclical rallies in both Europe and China. Emerging markets finished 2012 with a return more »
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Taking Stocks of China (The Upside of 25 Million Single Drunks)
By Nick Slepko - December 3, 2012 | Tickers: CHIQ, CHIE, FXI, EWZ, TSGTY.PK
Prior to joining Global X Funds, Alex Ashby lived and traveled extensively throughout Asia. He currently manages a group of six ETFs covering the consumer, energy, financial, industrial, material, and technology sectors of the Chinese economy.
Nick Slepko: Even though the weighting of your ETFs are largely determined by market capitalization, is there any one company in the two hundred that make up the six funds which sticks out more »
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Is it Time to Bet on China?
By Andrés Cardenal - October 23, 2012 | Tickers: AAPL, CMGE, HAO, FXI, YUM |
Investors have been very concerned about the economic slowdown in China for several months. The Chinese economy is decelerating from the record growth rates observed in previous years, and the country has a very peculiar economic system that generates considerable noise and uncertainty. Over the last weeks, however, many economic indicators are pointing to a successful soft landing for the Chinese economy and, if this trend is confirmed, Chinese stocks more »
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The Contrarian Case for Investing in China
By Andrés Cardenal - August 30, 2012 | Tickers: BIDU, CMGE, HAO, FXI, SPY
Investors have been flying away from Chinese stocks lately, as many fear the possibility of an economic collapse in the country. China will need to implement many important reforms over the following years in order to achieve a sustainable development path in the long term, but right now its economy may be more resilient than many believe. Depressed prices for many Chinese stocks may be offering attractive entry points from more »
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5 Reasons We Shouldn't Fear China
By Kyle Farrah - July 8, 2012 | Tickers: FB, FXI, MCD, SBUX, YUM |
The U.S. has many problems that need to be addressed. The national debt is at 15.8 TRILLION Dollars. That’s equal to over $50,000 for each taxpayer. Our country ranks 28th in math and science, and regulation is crippling the business world. The U.S., which had once occupied the number one spot for economic freedom, now has moved down to only tenth place. There are many more »
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Slow the Bloat To China
By Peter Pham - June 25, 2012 | Tickers: HBC, FXI, EWA, NKY, WYNN |
According to the IMF, China’s contribution to global economic growth has increased to an average of 31% from 2010-2013, up from just 8% in the 1980s, making it the world’s largest single contributor to global GDP. China’s GDP growth in Q1 2012 was 8.1%, a three-year low.
With the Eurozone on the brink and the US still treading water, the world is again looking to China more »
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Bears Found in China?
By Peter Pham - May 16, 2012 | Tickers: AAPL, GCC, INTC, FXI, SPY
It is difficult for me to fathom the bear case for China. I get the worry over Europe and the U.S. I get the credit-created real estate bubble. I even get the wary eye cast over the Chinese government statistics released for our consumption. What I don’t get is how it is possible to look at a slowdown over a few months and call it a crash. But more »
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GE: Growth in Energy?
By Peter Pham - May 11, 2012 | Tickers: GE, FXI
General Electric’s (NYSE: GE) decision to ditch its stake in NBC last year is already paying strong dividends for them. Buried in a first quarter earnings report where year-on-year revenue and earnings were down, they were still better than expected. Assets that were allocated to NBC were shifted to their Oil and Gas operations which have since grown 64% over the two-year redeployment.
GE has re-dedicated themselves, somewhat, to more »
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J.P. Morgan on the Chase in China
By Peter Pham - May 11, 2012 | Tickers: DB, HBC, FXI, JPM
Regardless of how one feels about J.P. Morgan (NYSE: JPM), and recently Tangent Capital’s Chris Whalen called them a ‘monopoly’ on CNBC’s Squawk Box eliciting stunned silence, the news of their $2 billion CIO loss through the office of the “London Whale” Bruno Iksil underscores just how big a player they are whenever they show up to play. While first quarter revenues, company-wide, were off slightly their more »
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China’s Liberalized Equity Market A Boon
By Peter Pham - May 8, 2012 | Tickers: HBC, FXI, DSUM, BNO
China’s equivalent to the SEC announced changes which began on May 2nd that can be seen as positive baby steps towards opening up those markets to a broader range of potential investors. China, like Vietnam and India, is what is known as an “ID” market, meaning that foreigners have to trade publicly which puts them at a disadvantage to domestic traders.
The reforms for China’s markets, though more »
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The Fatal Flaws of Buy-and-Hold
By Mike Dever - May 8, 2012 | Tickers: FXI, EWA, EZA, EWD, SPY, DIA
Virtually all buy-and-hold statistics are created with the benefit of hindsight. If we could invest in the “Hindsight Fund”, where we decide today where we would have placed our money last week or last year, then this would not be a problem. Unfortunately, no such fund exists.
Of course, most studies are based on retrospective analysis, which may have little to no bearing on real-time action or reaction. Announcing what more »
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Emerging Markets’ Loss Vietnam’s Gain
By Peter Pham - April 25, 2012 | Tickers: FXI, EEM, VNM
The VN Index has risen 34% so far this year. With that increase there has been a significant flow of funds into the various funds and ETFs focused on Vietnam. This has been happening at a more consistent rate than those funds covering countries like China and Thailand. According to a recent article at Bloomberg more than $91 million has flowed into Vietnamese funds this year. Alot of that has more »
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How Sustainable is China's Growth?
By Peter Pham - April 24, 2012 | Tickers: FXI, RSX, VNM
Lost in all of the discussion about China’s rise to the top of the economic mountain has been the sustainability of said rise. In looking over history we see periods of hundreds of years where a particular society or nation dominates the global economy of the time: the British in the 17th through early 20th centuries, the U.S. for the past century are the two most more »
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