This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

ETFs for Betting on China (Correct)

Orignial story corrected to reflect that the PowerShares Emerging Markets Infrastructure ETF is a a global equity fund focused on infrastructure development.

NEW YORK (TheStreet) -- Recently, China pledged to loan $20 billion to Venezuela as it seeks to strengthen its ties with oil-rich developing nations. The move underscores China's increasing wealth and global power.

China's GDP growth remains stunning, and it's expected to surpass Japan as the world's second largest economy sooner rather than later.

Following are four ways to invest in China and reap the benefits of its growth.

1. Chinese Equity Market ETFs: These exchange-traded funds allow investors to gain direct exposure to Chinese companies. Broad-based ETFs to consider include PowerShares Golden Dragon Halter USX China (PGJ), Claymore/AlphaShares China All-Cap ETF (YAO) or the SPDR S&P China ETF (GXC).

A Primer on China (Forbes)

These ETFs are similar in that China Mobile, China Life Insurance Company and CNOOC are among their top holdings.

For sector-specific exposure, one could consider the Claymore China Technology ETF (CQQQ), which gives exposure to 33 Chinese technology companies; the Global X China Energy ETF (CHIE), which gives exposure to 23 Chinese energy-related companies or the Global X China Industrial ETF (CHII), which gives exposure to 31 Chinese industrial companies.

2. Broad-Based Emerging-Market Funds: These give investors exposure to multiple emerging markets. Some offer exposure to both China and other nations that are benefiting from China's growth. One such ETF is the SPDR S&P Emerging Markets. (GMM), which allocates 17% of its assets to China and 9.2% to Taiwan, a nation whose economy is closely tied to China's. Another notable mention is the Vanguard Emerging Markets Stock ETF (VWO), which allocates 17.8% of its assets to China, 12.4% to South Korea and 11.2% to Taiwan.

3. Emerging Market Infrastructure ETFs: These allow investors to reap all of the benefits of a growing China, a nation focusing on infrastrusture development. A good play here is the PowerShares Emerging Markets Infrastructure ETF (PXR), which gives ample exposure to Shanghai Electric Group Company Limited and Jiangxi Copper Company Limited.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,943.81 +28.74 0.17%
S&P 500 1,967.57 +2.89 0.15%
NASDAQ 4,415.49 +19.2860 0.44%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs