sugarfree Posted October 16, 2006 Share Posted October 16, 2006 Hi,I'm resident in France where I have access to a range of Exchange Traded Funds offered by Lyxor Asset Management (owned by Société Générale). They are all eligible for the PEA.I'm keen to invest in China and I see Lyxor has two options here, one tracking the Hang Seng Index and the other the Hang Seng China Enterprises Index. Are there any old China hands out there who could advise me on which is the safer, long-term bet? I'm 42 and ideally, I would like to leave the money invested for the next 20 years. Perhaps I should just track both indices?Would love to hear your opinions! Link to comment Share on other sites More sharing options...
united Posted October 16, 2006 Share Posted October 16, 2006 Sugarfree,The I think the idicies track different sectors the Hang Seng tracks the 33 largest companies in Hong Kong the China Enterprise Chinese state owned companies. A tracker only buys and sells stock as they enter and leave the index so there is no analysis as to potential. Some folk make money by buying stocks about to enter the index as trackers have to buy (or replicate) the index. Both indicies have a concentration of risk ie Hong Komg or Chinese state. Investing in China over the long term may be better through a good fund manager selecting stocks to buy. Index tracking has lower fees than active management because there are lower overheads. Link to comment Share on other sites More sharing options...
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