Topic: How To Invest

GUGGENHEIM CHINA SMALL CAP ETF $23.14 – New York Exchange symbol HAO

GUGGENHEIM CHINA SMALL CAP ETF $23.14 (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 $184.3-millon fund’s top holdings are Youku Tudou, 2.0%; Tsingtao Brewery, 1.4%; Xinyi Glass Holdings, 1.3%; Sino Biopharmaceutical, 1.3%; China Everbright International, 1.2%; BYD Co., 1.2%; GCL Poly Energy International, 1.2%; Sohu- .com. 1.2%; Semiconductor Manufacturing International, 1.1%; and China Resources Gas Group, 1.1%.

As China’s economy matures and wages rise, domestic spending should continue to increase. As well, China’s leaders will likely need to spend more on 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 0.70% and a 1.4% yield.

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

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