PowerShares Gold Dragon Halter USX China Portfolio (PGJ)
Expense Ratio: 0.7%
China’s economy is massive, so you’d be wise to carve out a piece of its growth. One of the best ways to do that is w
ith the PowerShares Gold Dragon Halter USX China Portfolio (PGJ). This China ETF tracks the NASDAQ Golden Dragon China Index, with 68 holdings that do most of their business in China.
Top holdings include internet companies Qihoo 360 Technology (QIHU) and Baidu (BIDU) — both about 8% — as well as Chinese media giant Sina (SINA) at 6.6%. More than half of PGJ is dedicated to tech stocks, with another 20% allocated in consumer discretionary. This makes a good play for China’s burgeoning tech industry, with a side dish of consumer stocks for the country’s enormous population.
Even when it comes to ETFs, overseas investments still have their risks, but this China ETF has averaged 10% annual gains over the past five years.