Deep Dive: This China-focused fund beats its rivals by looking beyond Alibaba and Tencent

What’s going on in China — the MSCI China Index has returned 43% this year? That’s almost four times the gain of the U.S. benchmark index.

And it’s been a smooth upward ride:


If you hold shares of the iShares MSCI China ETF MCHI, +0.46% which tracks the index, it’s been a wonderful 2017. The S&P 500 Index SPX, +0.31% of the U.S. has returned 12.2% this year.

But what some investors don’t realize is that the MSCI China index is heavily weighted toward the country’s hottest internet and computer stocks. With a fast-rising middle class in the world’s most populous nation, China’s other industries — banking and insurance, among others — also will benefit.

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