Fading China

Weak manufacturing data continues to be a drag on the performance of China equities.

fxi-sept2012
(click to expand)

The FTSE-Xinhua China 25 Index Fund (FXI) is up only 6% in the past 12 months while the S&P 500 is up 28% over the same time period.

According to the Wall Street Journal, the HSBC China Manufacturing Purchasing Managers Index remains well below the key expansionary threshold of 50. The preliminary September reading marks the 11th straight month the index has been in contractionary territory, signaling extended difficulty for manufacturers.

FXI tracks the FTSE China 25 Index.  Top holdings include China MobileChina Construction Bank,Industrial and Construction Bank of China and CNOOC. The expense ratio for the $4.6 billion ETF is 0.72%.

For more ways to invest, see the complete list of country ETFs.

– ETF MarketPro Staff
September 21, 2012