Keith RichardsBMO CHINA EQUITY INDEX ETFZCH.TOPAST TOP PICKDec 19, 2014

He's long-term on this ETF. There is defined support at $14, so if you buy at $14, you're okay. But be patient. If it breaks below that support, he will get it.

He bought it at the bottom. Per his normal strategy, he will sell at the top of its trading range. China was feared/disliked as an investment, which became a traded trade, and that's when he bought. Inevitably, sentiment reverses.

Risks include geopolitical risk in China.
Broad exposure to China risky but carries opportunity.
Believes a good way to play a China re-opening.

ZCH is more focused on the tech names with BABA counting for 22% of the holdings. There is virtually no financials. XCH has about 20% banks. Must understand what you own. Internet names have been pounded recently. KWEB could be a good way to play it.

Modi is now allowing Apple to do business there. India's had problems with bureaucracy, and if he makes it easier for foreign companies to come in and raise capital, it could be great. It depends on how the trade talks will go in terms of China. China has many geopolitical issues.

He got out of emerging markets early this year at a modest loss. The currency issue has knocked down China ETFs. China doesn't play by the rules, either. Some may call it corruption. Cut your losses and sell.