“Although there are many equal-weighted ETFs, finding one that specializes in emerging markets such as China isn’t in the cards.
However, First Trust uses equal weighting in many of its ETFs, so I went to its site for an answer. I came up with the First Trust ISE ChIndia Index Fund ETF (NYSEARCA: FNI) which uses a partial equal-weighting methodology to come up with the 25 best stocks in both China and India.
FNI is rebalanced semiannually, ranking companies in each country by market cap and liquidity. The top-three ranked stocks are weighted at 7%, the next three at 4%, the three after that at 2%, and the remaining 16 are equally weighted at approximately 0.68%.
Alibaba, JD.com and Baidu Inc (ADR) (NASDAQ:BIDU) are the three top stocks from China. They’re all currently weighted below 7% because of the correction in recent weeks.”
Read the complete article at Yahoo Finance right here: The Safer Way to Play Alibaba Group Holding Ltd Stock
Read why the Deep Value ETF Accumulator invests in FNI right here: Best Long-Term Performance China Equity ETFs
