The Risk is Too Great

“Goodbye” is an exaggeration, but I do have concerns. As the Chinese Communist Party takes anti-business actions, the appeal of investing in Chinese companies is greatly diminished. Although I have done some short-term trades in companies like NIO (NIO Inc. designs, develops, manufactures, and sells smart electric vehicles in China.), I don’t like holding investments that are in unstable parts of the world. I won’t be speculating in Chinese companies for the foreseeable future. There are far better USA-based companies for that purpose.

China is a higher-risk region for sensible investors to avoid.

VEU – Vanguard FTSE All-World ex-US ETF

VEU is my only ETF with some China exposure. About 11% of the assets in VEU are Chinese companies. VEU is also a small position in each of the six UTMA accounts I manage for our grandchildren. Today I reduced my exposure to VEU from 175 shares to 100 shares. I still think VEU is a decent international ETF, but I wanted the cash for other purposes.

Our portfolio of investments has very limited exposure to China. Source: Fidelity Investments web.


If you own shares of VEU, I would not sell them. The China exposure is minimal. If you have multiple ETFs, you might want to investigate how much you have committed to different parts of the world. It isn’t practical to completely avoid China if you purchase international mutual funds or ETFs, but you might want to think twice about adding more if a fund has a heavy China exposure. For example, I would avoid funds like: FXI, FLCH, CQQQ, KWEB, and ASHR. If you want to know if you are exposed to Chinese investments, this link may help you: ETFDB

Full Disclosure

I own 100 shares of VEU.