From Burton Malkiel, author of “A Random Walk Down Wall Street.”
He suggests a strategy of investing half of your money in H and N shares — the shares of Chinese companies that trade in Hong Kong and New York –- and the other half in non-Chinese stocks and countries that are major trading partners with China. And it’s actually not that hard to execute.
His simple strategy is to combine the SPDR S&P China ETF (GXC) with Vanguard Pacific Index Viper (VPL).
More sophisticated investors might construct a portfolio using a
- 30% stake in the SPDR S&P China ETF (GXC) (Expense Ratio 0.60%)
- 40% position in Vanguard Pacific Stock Index (VPL) (Expense Ratio 0.18%)
- 20% stake in iShares MSCI Hong Kong (EWH) (Expense Ratio 0.54%)
- 5% in Vanguard Energy Viper (VDE) (Expense Ratio 0.25%)
- 5% in Vanguard Materials Viper (VAW) (Expense Ratio 0.25%)
