Topic: How To Invest

GUGGENHEIM CHINA SMALL CAP ETF $21.70 – New York Exchange symbol HAO

GUGGENHEIM CHINA SMALL CAP ETF $21.70 (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 $168.8-million fund’s top holdings are Alibaba. com, 1.7%; Zoomlion Heavy Industry, 1.3%; Longfor Properties, 1.2%; Sino-Ocean Land Holding, 1.2%; Guangdong Investment, 1.6%; Tsingtao Brewery Co., 1.6%; Golden Eagle Retail Group, 1.2%; Shanghai Industrial Holdings, 1.1%; Zhaojin Mining Industry, 1.1%; and Digital China Holdings, 1.1%.

As China’s economy matures, domestic spending should continue to rise. As well, China’s leaders will likely need to increase spending on programs and services 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 0.70% and a current yield of 2.9%.

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

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