ETF News & Commentary
SAN DIEGO (ETFguide.com) - Just in time for the surging performance of emerging market stocks is a new ETF that aims to capitalize on it.
The Claymore/AlphaShares China All-Cap ETF (NYSEArca: YAO) aims to deliver complete exposure to the Chinese stock market by including not just large company stocks, but mid and small cap stocks as well.
“Since the launch of TAO in 2007, Claymore has been committed to providing comprehensive access and products for the Chinese markets,” said Christian Magoon, President of Claymore Securities. “Where our earlier products have given investors the opportunity for portfolio diversification, YAO offers direct exposure to China’s broader stock market.”
YAO is benchmarked to the AlphaShares China All Cap Index. It selects stock passively and it employs a modified market cap weighting strategy and is free float adjusted. (See Index Strategy Map below) At the end of September, the index had 99 holdings. Large cap stocks accounted for 57% of the index, with mid cap stocks at 33% and small stocks at 10%.
Investments in Chinese stocks by foreign investors are currently restricted by the Chinese government to Hong Kong (HK) listed shares, including H-shares and Red Chips.
Other popular Chinese ETFs include the iShares FTSE/Xinhau China 25 ETF (NYSEArca: FXI) and the SPDR S&P China ETF (NYSEArca: GXC).
Over the past 20 years, China’s GDP has become a larger or more significant contributor to the world economy.
According to the prospectus, YAO charges annual expenses of 0.70%.
Claymore manages other China focused funds too including the Claymore/AlphaShares China Small Cap Index ETF (NYSEArca: HAO) and the Claymore/AlphaShares China Real Estate ETF (NYSEArca: TAO).
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