Excellent post, Jonathan. One question for you. Small cap Chinese stocks like CATL might be a challenge for a traditional US or European investor to obtain. To go beyond the big names like BABA, what do you think about a China-focused fund, such as the iShares MSCI China ETF (MCHI) or the Invesco China Technology ETF (CQQQ)?
It's an excellent post and very timely. In my experience asset allocation trumps individual stock picks unless you are lucky enough to find the needle in the haystack. There are ETFs specialising in nearly every sector--e.g. China clean tech, China tech, defense stocks, uranium, etc. Unless you have over $1m to invest, it probably makes sense to buy a selection of these. If you do have a larger sum, you may save some fees by purchasing the top five or so holdings in each fund, but at the expense of your time and possibly missing out on a rising star in the ETF's portfolio. Hope this helps...
Excellent post, Jonathan. One question for you. Small cap Chinese stocks like CATL might be a challenge for a traditional US or European investor to obtain. To go beyond the big names like BABA, what do you think about a China-focused fund, such as the iShares MSCI China ETF (MCHI) or the Invesco China Technology ETF (CQQQ)?
It's an excellent post and very timely. In my experience asset allocation trumps individual stock picks unless you are lucky enough to find the needle in the haystack. There are ETFs specialising in nearly every sector--e.g. China clean tech, China tech, defense stocks, uranium, etc. Unless you have over $1m to invest, it probably makes sense to buy a selection of these. If you do have a larger sum, you may save some fees by purchasing the top five or so holdings in each fund, but at the expense of your time and possibly missing out on a rising star in the ETF's portfolio. Hope this helps...
Actually these comments made me think and the next article will discuss ETFs :)
I would not classify CATL in the small cap, as it is a 895 CNY / $122B company market cap
I am generally not a big fan of ETFs, but I will discuss it deeper in an upcoming article