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The Claymore/AlphaShares China Small Cap Index ETF (AMEX: HAO) began trading this week offering yet another way to get at the China growth story.

Claymore's HAO ETF has an expense ratio of 0.70%. It includes about 120 different companies all weighted by market cap. The benchmark sets a minimum market-cap size of $200 million and a maximum of $1.5 billion and no one company can exceed 5% of total exposure.

Smaller companies tend to be privately owned which is an advantage but valuations still appear pricey. The average p/e ratio is 35 and average price to book of companies in the index is 4.2. The HAO ETF is also trading at a 6% premium to NAV.

Below are the ten top holdings.

BEIJING ENTERPRISES HOLDINGS 2.99 %
CHAODA MODERN AGRICULTURE 2.89 %
SINOFERT HOLDINGS LTD 2.40 %
WUXI PHARMATECH INC - ADR 1.98 %
CHINA SHIPPING CONTAINER 1.96 %
SOHU.COM INC 1.96 %
NETEASE.COM INC-ADR 1.93 %
SHANGHAI JIN JIANG INTERNATIONAL 1.84 %
CNPC HONG KONG LTD 1.76 %
JIANGSU EXPRESSWAY CO LTD 1.75 %

Source: New China 'Smaller Company' ETF