Spotlight On Guggenheim China Real Estate ETF

| About: Guggenheim China (TAO)

ETF spotlight on Guggenheim China Real Estate (NYSEArca: TAO), part of an ongoing series.

Assets: $22.7 million.

Objective: The Guggenheim China Real Estate ETF tries to reflect the performance of the AlphaShares China Real Estate Index, which holds securities of Chinese publicly-traded companies and real estate investment trusts that generate their revenues from real estate development.

Holdings: Top holdings include: The Link REIT 7.72%, China Overseas Land & Inv 5.62%, Cheung Kong Holdings Ltd. 5.60%, Swire Pacific Ltd. 5.35% and Sun Hung Kai Properties 5.23%.

What You Should Know:

  • Guggenheim Investments sponsors the fund.
  • TAO has an expense ratio of 0.65%.
  • The fund has a 12-month yield of 1.12%.
  • The ETF is up 1.44% over the last month, down 24.09% over the past three months and down 25.58% year-to-date.
  • TAO holds 75.57% of its portfolio in Hong Kong assets and 24.43% in China assets.
  • While the fund holds a significant portion of its weighting Hong Kong allocations, many Hong Kong firms operate on the mainland. As such, the Hong Kong holdings may have a high correlation to movements in mainland China assets.
  • Currently, the markets are bracing for China’s “hard” or “soft” landing. Depending on the outcome, the fund may experience a tough road ahead.

The Latest News:

  • TAO was up more than 3% on Monday following upbeat manufacturing data from China.
  • The Chinese government is taking a stronger hand in stabilizing the real-estate market, reports.
  • The government will be stepping up its evaluation of city and county authorities on their efforts to control housing prices and monitor quality control in subsidized housing.
  • In September, China’s housing prices remained relatively unchanged month-over-month and even slowed year-to-date, which indicates that Beijing’s real estate regulations are having an impact.

Guggenheim China Real Estate ETF

click to enlarge

Max Chen contributed to this article.

Disclosure: None