This Day On The Street
Continue to site right-arrow
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
TheStreet Open House

3 ETF Strategies for China and India

NEW YORK ( TheStreet) -- The popularity of China and India as investing destinations has lead to the creation of a broad selection of exchange-traded funds aimed at tracking their respective markets from various vantage points.

Aside from playing either nation independently, using ETFs, investors can combine the strengths of these two economic superpowers, using a "Chindia" ETF to gain exposure to an interesting mix of both Chinese and Indian companies under one roof.

With economic issues threatening to stifle the economic pictures within the United States and much of the developed world, a growing slice of the world economy is turning to the emerging markets as a source of economic potential. Within the realm of emerging markets, perhaps no two nations are as recognizable or as closely followed as India and China.

Boasting massive populations and -- as evidenced by India's nearly 9% GDP growth in the second quarter of 2010 -- breakneck economic growth pictures, these two economic superpowers will certainly be major shapers of global economic and political policy for years to come.

Given the strong prospects and popularity of these two countries, investing in China and India has become a popular area of focus for ETF providers who have opened the doors to a growing number of opportunities for China and India bulls and bears.


Initially, investors looking for a taste of the Chinese markets were forced to settle for ETFs such as iShares FTSE/Xinhua China 25 Index Fund (FXI), and SPDR China ETF (GXC)

While they certainly gain exposure to China's economy, their portfolios are laden with large, multinational and state-run companies which may not appeal to investors looking products which are more influenced by the average Chinese citizen.

Luckily, in more recent times, the China-based ETF industry has exploded. Today, tapping into smaller slices of China's economy such as the nation's small-cap market or technology picture has become as simple as holding the Claymore/AlphaShares China Small Cap ETF (HAO) and Global X China Technology ETF (CHIB).


While it still has some catching up to do if it wants to compete with the range of fund's dedicated to China's economy, the India-focused ETF industry has also gained impressive traction. Today, the largest and most successful of these products are large-cap focused products such as WisdomTree India Earnings ETF (EPI) and PowerShares India Portfolio (PIN). However, fund providers, Emerging Global Shares and Van Eck, have recently unveiled products which allow investors to tap into the small-cap companies which comprise India's markets.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!
GXC $85.24 3.43%
HAO $27.21 4.17%
FNI $30.34 0.63%
PIN $22.54 2.69%
FXI $44.74 3.81%


DOW 17,976.31 +263.65 1.49%
S&P 500 2,086.24 +25.22 1.22%
NASDAQ 4,947.4410 +56.2220 1.15%

Partners Compare Online Brokers

Free Reports

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