December 2022 Investment Memo

On China, Uncertainty, and International Diversification

China and Uncertainty

One of the most interesting internal debates we have been having is whether to maintain our allocation to China via broad-based emerging market ETFs and mutual funds or, instead, to use EM ex-China funds (like DFA’s new offering or the Freedom 100 Index).

The crux of the issue lies in two queries:

1. Does China support free markets?

2. Are…