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Topic: How To Invest

GUGGENHEIM CHINA SMALL CAP ETF $25.66 – New York Exchange symbol HAO

GUGGENHEIM CHINA SMALL CAP ETF $25.66 (New York Exchange symbol HAO; buy or sell through brokers; www.guggenheimfunds.com) aims to track the AlphaShares China Small Cap Index, which is made up of all Chinese stocks that are legal for foreign investors and have market caps between $200 million and $1.5 billion.

The $205.6-millon fund’s top holdings are Shenzhou International, 1.1%; Air China, 1.0%; Zijin Mining, 1.0%; China Everbright, 1.0%; Zhejiang Expressway, 1.0%; CSPC Pharmaceutical, 1.0%; Aluminum Corp. of China, 1.0%; Datang International Power, 1.0%; and Shanghai Electric, 1.0%.

As China’s economy matures and wages rise, domestic spending should continue to increase. As well, the country’s leaders recently announced that they will extend social services to migrant workers, and they will likely have to make further investments in programs to ease the growing gap between the rich and poor. Guggenheim China Small Cap ETF is well positioned to benefit from both of these trends.

The ETF was launched on January 30, 2008. It has an expense ratio of 0.76% and a 2.3% yield.

Guggenheim China Small Cap ETF is a buy for aggressive investors.

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