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    Home»Funds»The China Risk in Index Funds
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    The China Risk in Index Funds

    August 25, 2024





    By Aaron Mc Nicholas



    — August 25, 2024


    An electronic screen in Shanghai displaying the Shanghai Composite Index, the Shenzhen Component Index and the Hang Seng Index, December 5, 2023. Credit: VCP via AP Images

    As the U.S. government mulls restrictions on outbound investment into China, a particular area of controversy is financial products through which millions of ordinary investors funnel billions of dollars into the country — index tracker funds.

    Such funds enable those who put money into them to track the fortunes of a particular index, like the S&P 500. The funds do this by investing their assets into the companies in proportion to the weighting that each stock has in that index.

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