The Securities and Exchange Commission filing of the U.S.-traded holdings in China's sovereign wealth fund reveals that the country is investing in ETFs.
The Chinese sovereign wealth fund, China Investment Corporation, revealed in the filing that about $9.6 billion of its estimated $300 billion of assets under management are in securities and funds traded in the U.S. Of this $9.6 billion, I calculate that $2.4 billion, or 25% of these assets, are in exchange-traded funds.
The top ETF holding by value, to which China's sovereign wealth fund dedicates approximately $254 million, is iShares S&P Global Materials Index Fund (MXI). China clearly likes this sector and further exposes itself to it with some of its holdings of individual companies. Among the top equity holdings by value of the sovereign wealth fund are two companies that are prominent holdings in MXI, Vale (VALE) and Teck Resources (TCK).
China Investment Corporation's holdings in some of the ETFs represent quite a large chunk of total assets under management for these funds. In the case of MXI, the $254 million value of the shares bought by CIC represents 28% of the $912 million of total assets under management for the ETF, as of the end of 2009. This is not true of all the U.S.-traded ETFs that CIC holds, however, as its $79 million stake in United States Oil Fund (USO) is a lesser but still sizable 3% portion of the roughly $2.6 billion the ETF had under management as of Dec. 31.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV