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, WSJ.com 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
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Max Chen contributed to this article.