Tariffs may help this ETF

Article Excerpt

INVESCO CHINA SMALL CAP PORTFOLIO ETF $22.65 (New York Exchange symbol HAO; buy or sell through brokers; www.invesco.com) aims to track the AlphaShares China Small Cap Index. It’s made up of the 329 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 4.7%. Top holdings for this $57.9 millon fund are China Communications Services, 1.1%; Shenzhen International Holdings (conglomerate), 1.1%; China International Capital, 1.3%; Jiayuan International (real estate), 1.0%; Li Ning (shoes and sporting goods), 1.0%. China continues to work on reducing high levels of consumer and business borrowing. This could limit economic growth. Still, the tariff war with the U.S. should also spur the Chinese government to encourage domestic consumption. Invesco China Small Cap Portfolio ETF is well-positioned to benefit from this trend. Invesco China Small Cap Portfolio ETF is a hold for aggressive investors. investors…