BMO CHINA EQUITY INDEX ETF (ZCH-T)

Risks include geopolitical risk in China.
Broad exposure to China risky but carries opportunity.
Believes a good way to play a China re-opening.

ZCH is more focused on the tech names with BABA counting for 22% of the holdings. There is virtually no financials. XCH has about 20% banks. Must understand what you own. Internet names have been pounded recently. KWEB could be a good way to play it.

Modi is now allowing Apple to do business there. India's had problems with bureaucracy, and if he makes it easier for foreign companies to come in and raise capital, it could be great. It depends on how the trade talks will go in terms of China. China has many geopolitical issues.

He got out of emerging markets early this year at a modest loss. The currency issue has knocked down China ETFs. China doesn't play by the rules, either. Some may call it corruption. Cut your losses and sell.

He has been underweight on China for the last year or so. It has underperformed dramatically over the last 6 months. It is starting to get more interesting to him now. He gets it through a US EFF. China is going to have a challenge holding a 7% growth rate. It should slow to 4-5% over the next couple of years. He thinks ZCH-T will fall another 10%.

(A Top Pick Nov 7/14. Down 2.2%.) This hasn’t worked as well as the Shanghai index, but he feels safer with this one. This one will be dragged along.