Scaling the Great Wall
By Journal of Indexes Staff

The new fund, the iShares FTSE/Xinhua China 25 Index Fund, trades on the NYSE under the ticker FXI. The fund tracks the FTSE/Xinhua China 25 Index, which is composed of the 25 largest companies in China. The index posted returns of 27% in the past year, and 84% since inception in March 2001. It has substantial exposure to the areas of telecommunications and oil.

A similar fund for European investors launched in London.

"There's never been a more efficient, cost-effective way to invest in China," said Lee Kranefuss, CEO of BGI's Intermediary and ETF Business.

Cost is a key selling point for the fund, which boasts an expense ratio (ER) of just 0.74%. By comparison, the average ER of actively managed China mutual funds stands at 1.93%, according to BGI.