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How to invest in emerging markets while avoiding the risks of investing in China

Investors traditionally target emerging markets for high growth opportunities, and China falls into that bucket.

However, investing in China has always been fraught with risk as the country remains shrouded in secrecy, plagued by human rights issues and hideous from capital markets.

Now, with President Donald Trump in the White House, the relationship between the two largest economies in the world has become more relaxed as two banners on taxes and on the world’s minerals, among other issues.

It’s teasing Security – Last Answer Change %
The vexc Vanguard World Fund emerging markets ex-china 77.63 U +0.66

+ 0.86%

To avoid the volatility of China, Vanguard has developed a solution to target the biggest swearing markets, such as Brazil, India and Taiwan, by using its markets from Vanguard, or VEXC, which just smells of China.

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“VEXC is an option for investors who want low index exposure to emerging market stocks but may want to avoid companies located in China because of these unique corporate risks,” said a Vangurd spokesperson.

Chinese President Xi Jinping (Kevin Frayer/Getty Images)

It’s teasing Security – Last Answer change %
– Come in Infosys Ltd. 17.46 U +0.19

+ 1.10%

Tsm Taiwan semiconductor manufacturer CO. LTD. 290.63 +5.95

+ 2.09%

Launched in September, the ETF aims to mirror the FTSE EX China Index, which has more than 1,000 companies, including Taiwan Semiconductor and Infosys. The fund, recommended as a long-term investment, closes $50 million in assets, and has returned about 4% since launch, slightly tracking the 4.9% return of its benchmark.

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In the year, FTSE from ex China advanced more than 26%.

Trump, China’s XI has a phone call, a meeting plan

Trump, who is running hot and cold in China, recently held a phone call with President Xi Jinping, which he described as productive.

“I had a very good call with President XI, of China,” Trump wrote in a social media post. “We discussed many topics including Ukraine / Russia, Fentanyl, Soya, our relationship is getting better. From there it is better. Now, it has gotten better. Now, there has been the best for both sides. Now we can put our things in the big picture.”

China's XI and President Donald Trump shake hands

To avoid the volatility of China, Vanguard has developed a solution to target the largest swearing-in markets, such as Brazil, India and Taiwan, through its markets from China China. (Brendan smilowski/AFP/Getty Images)

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XI asked Trump to visit Beijing in April, an invitation he accepted.

“To that end, President XI invited me to visit Beijing in April, I accepted, and I agreed that he would be my guest so that we could continue communication,” said Trump.

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