China has become a market too large to ignore, and a properly diversified, world-class investment portfolio should have a substantial allocation to China-related assets. Although China is now the 2nd largest stock market in the world by US dollar market cap, surpassing both Japan and the European Union, the iShares MSCI All Countries World Index ETF (ACWI) still only gives China a 3.6% weight, compared with 7.9% for Japan and 5.7% for the United Kingdom.
This article starts by describing how most ETF investors have so far increased their China allocation through broad