ETF Spotlight: Claymore/AlphaShares China Small-Cap

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 |  Includes: AICAF, CEVIF, HAO, TSGTY
by: Tom Lydon

ETF Spotlight on Claymore/AlphaShares China Small-Cap (NYSEARCA:HAO), part of a weekly series.

Assets: $343.7 million

Objective: Tracks the AlphaShares China Small-Cap Index, which holds companies with a market cap between $200 million up to a maximum of $1.5 billion.

Holdings: 156 securities are held in the fund; top names include Air China (OTCPK:AICAF) (2.1%), China Everbright (OTCPK:CEVIF) (1.6%), and Tsingtao Brewery (OTCPK:TSGTY) (1.4%).

What You Should Know

  • HAO primarily holds small-caps, which have 96.6% of the total weighting, but mid-caps get a small nod, too, with 3.4% of the weighting.
  • Industrials are the largest weighting, with 28.9%; consumer discretionary, 14.2%; materials, 13.8%; information technology, 12.3%.
  • HAO is one of the top-performing unleveraged China ETFs in the last three months, up 15.7%.
  • In terms of the 0.70% expense ratio, HAO is right in the middle on cost (the most expensive China ETF costs 0.90%; the least expensive is 0.60%).

The Latest News

  • In the near-term, China’s small-cap companies are expected to outperform large-caps, reports Bloomberg. Liquidity and economic fundamentals may continue to dog bigger companies, while smaller ones are more flexible and have more room for growth.
  • On the other hand, Chinese restrictions on the sale of equities are about to expire, sparking concerns that there’s about to be a supply glut and send share prices down.
  • Small-cap stocks have outperformed in the last year in China, thanks to the government’s push for clean energy and satellite navigation systems. The focus has lured money to start-ups, says Bloomberg. (Click to enlarge)

China ETFs, Small-Cap ETFs

Disclosure: None