Author Topic: Question about investing in China ETF  (Read 981 times)

Jonbell205

  • 5 O'Clock Shadow
  • *
  • Posts: 1
Question about investing in China ETF
« on: April 15, 2019, 06:55:19 PM »
I will start posting on here some but I am interested in what everyone feels about MCHI for a long term investment.  My net wealth is around ~750K and I am 35.  Thinking about dropping 20K into it from a retirement account.  I’m just curious on everyone’s outlook on china in general with ongoing negotiations with Trump.

YttriumNitrate

  • Handlebar Stache
  • *****
  • Posts: 1842
  • Location: Northwest Indiana
Re: Question about investing in China ETF
« Reply #1 on: April 16, 2019, 06:29:32 AM »
I've had a big chunk in MCHI, HAO, and GAO for the better part of 10 years, and they have been among the worst performing aspects of my portfolio. While the Chinese economy has grown significantly in the last decade, the ETFs and Chinese stock market does not appear to be particularly well coupled to the Chinese economy.

Perhaps in another decade those three stocks will be among the best performers.

MaaS

  • Stubble
  • **
  • Posts: 243
Re: Question about investing in China ETF
« Reply #2 on: April 16, 2019, 07:53:02 AM »
I own considerably more than that through emerging market funds.

There are certainly some risks with leverage, but with 1.3 billion people, a small equity market (relative to GDP), and a country that's rapidly progressing, I don't see investing 2.6% of your assets in China as being a bad move.

 

Wow, a phone plan for fifteen bucks!