Japan is the better choice right now

Article Excerpt

POWERSHARES CHINA SMALL CAP PORTFOLIO ETF $32.21 (New York Exchange symbol HAO; buy or sell through brokers; www.invesco.com) changed its name from Guggenheim China Small Cap ETF in May 2018 when Invesco Ltd. bought Guggenheim’s ETF business. This particular PowerShares ETF aims to track the AlphaShares China Small Cap Index. It’s made up of the 347 Chinese stocks that foreign investors are allowed to hold and that have market caps of less than $1.5 billion. The ETF has an MER of 0.75% and yields 3.2%. Top holdings for this $94.3 millon fund are Zall Group (conglomerate), 1.6%; China First Capital, 1.3%; Momo Inc. (social media), 1.1%; Zijin Mining, 1.1%; Yanzhou Coal, 1.1%; Wuxi Biologics, 1.1%; Kingdee International Software, 1.1%; 51job (human resources), 1.0%; Genscript Biotech, 1.0%; and Jiayuan International (real estate), 1.0%. China continues to work on reducing the high levels of consumer and business borrowing. It also continues to tighten environmental regulations. Both of these efforts will limit economic growth. Still, as the…

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