ETF Talk

Take a Close Look at China

We featured FXI, a general Chinese exchange-traded fund (ETF), a little more than a month ago, and that fund’s upward climb warrants us looking at other ETFs focused on that huge emerging market. To that end, today’s ETF Talk will introduce you to two ETFs, with each fund tracking different areas of China’s market: small caps and the consumer.

Guggenheim China Small Cap ETF (HAO) traces the results of an index that follows publicly traded small capitalization companies based in mainland China. In other words, HAO profits on the success of smaller publicly traded Chinese companies. While this fund is about even this year, losing 1.43%, it has just climbed back from a big April-May tumble. Historically, HAO has bounced back strongly from midyear declines to close out each year. It also offers a dividend yield of 2.16%.

Read more about how various sectors of China’s economy compare to the whole at Eagle Daily Investor.

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