China ETF Choices

Index Universe has an article listing the various types of etf with exposure to China and a  list of examples. i am trading China from the long side now expecting positive moves in 2009 so I found the list interesting. Here is a sampling.

Looking at the universe of U.S.-domiciled ETFs, let's break down funds
investing in Chinese stocks into these general categories:

• Direct exposure: These include five ETFs:
  Claymore/AlphaShares China Real Estate ETF (NYSE: TAO);
  Claymore/AlphaShares China Small Cap Index (NYSE: HAO); PowerShares
  Golden Dragon Halter USX China (NYSE: PGJ); iShares FTSE/Xinhua China
  (NYSE: FXI) and the SPDR S&P China (NYSE: GXC).
• BRICs exposure:
  These include: First Trust ISE Chindia (NYSE: FNI); Claymore BNY BRIC
  (NYSE: EEB); iShares MSCI BRIC (NYSE: BKF) and the SPDR S&P BRIC 40
  (NYSE: BIK).
• Mixed exposure: Using an even
  broader mix, you can invest in China through at least five different
  ETFs: PowerShares FTSE RAFI Emerging Markets (NYSE: PXH); iShares MSCI
  Emerging Markets (NYSE: EEM); SPDR S&P Emerging Markets (NYSE:
  GMM); Vanguard Emerging Markets ETF (NYSE: VWO) and the WisdomTree
  Emerging Markets High Yielding Index (NYSE: DEM).

Of course, you can also gain even greater indirect exposure through a
variety of Asia Pacific funds. More than 10 separate ETFs are focused
on that part of the world and hold small doses of Chinese
representation.

China had a horrendous bear market move bottoming in October at attractive fundamental valuations and should be supported by a massive stimulus plan to be initiated in 2009. i am a buyer and will add on  pullbacks. The easily identified risk is that western markets accelerate to the downside or that this trade is already too crowded. So use stops.