In an emerging economy like China's, investing in an index-linked fund has some drawbacks. An active fund manager has the ability to adjust his or her portfolio as conditions warrant. By contrast, the composition of a major index usually changes only once a year, and not necessarily in a desirable direction.
Kamis, 10 Januari 2008
Stay nimble with active managers
ETFs are portfolios of stocks that replicate the performance of a stock index. For our China ETFs, the iShares FTSE/Xinhua China 25 Index (FXI, news, msgs) tracks 25 of the largest Chinese companies. The iShares MSCI-Hong Kong Index (EWH, news, msgs) tracks the overall Hong Kong market. The new PowerShares Golden Dragon ETF (PGJ, news, msgs) , which isn't included in the above table because it was only launched in December, tracks an index of U.S. listed stocks that derive a majority of their revenue from China.
In an emerging economy like China's, investing in an index-linked fund has some drawbacks. An active fund manager has the ability to adjust his or her portfolio as conditions warrant. By contrast, the composition of a major index usually changes only once a year, and not necessarily in a desirable direction.
In an emerging economy like China's, investing in an index-linked fund has some drawbacks. An active fund manager has the ability to adjust his or her portfolio as conditions warrant. By contrast, the composition of a major index usually changes only once a year, and not necessarily in a desirable direction.
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