By Dave Mock April 24, 2007 <o:p> </o:p>
Noted for their simplicity and other advantages over mutual funds, exchange-traded funds have become a popular investing tool. ETFs hold a collection of stocks that share certain elements in common, so that if investors want to capitalize on the booming economy in China, for example, they can turn to iShares FTSE/Xinhua China 25 Index (NYSE: FXI ) or PowerShares Golden Dragon Halter (AMEX: PGJ ) , which track two different Chinese stock indexes. <o:p> </o:p>
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But since these ETFs invest in a number of stocks, they give you a broad diversity that also limits your upside. For an investor who was, say, really hip to oil and gas explorers in the region but cold on the future prospects of Chinese Internet stocks, these ETFs wouldn't fit the bill. <o:p> </o:p>
$25.58 (06/25/07)
