Friday, January 30, 2009

Random Walk Author Likes Templeton China Fund

Princeton professor Burton Malkiel is best knows for his book, A Random Walk Down Wall Street.

His newest book is also a worthwhile read for investors interested in China--From Wall Street to the Great Wall: How Investors Can Profit from China's Booming Economy.

Here is a quick look at Malkiel's portfolio:

  • 20% Vanguard Total Stock Market ETF (VTI) (Tracks a broad index of U.S. companies)
  • 20% Vanguard FTSE All-World ex-US ETF (VEU) (Tracks a broad index of stocks from developed and emerging foreign markets.)
  • 20% Vanguard Total Bond Market ETF (BND) (Tracks a broad index of high-quality U.S. bonds)
  • 10% Vanguard Capital Opportunity (VHCOX) (An actively managed fund that likes big growth companies down on their luck)
  • 10% Vanguard Emerging Markets ETF (VWO) (Tracks an index of stocks developing nations)
  • 10% Templeton Dragon (TDF) (Invests in stocks from China and nearby nations)
  • 10% Matthew's India (MINDX) (Invests in stocks from India)

It should be noted his portfolio consists mostly of passively managed and exchange-traded funds. You might be surprised he is heavily invested in stocks with a third of his portfolio invested in emerging markets.

If you are looking to get up to snuff on China I recommend his book. You might also want to take a close look at his portfolio holdings listed above.
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Random Walk Author Likes Templeton China Fund

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