A Look At An All Cap Play On China (HAO)
An interesting scenario has played itself in the world of ETFs that track China. While the number of China-focused ETFs continues to grow, most focus solely on large caps, small caps or specific sectors.
There's one ETF that marries all three strategies and that is the Claymore/AlphaShares China All-Cap (NYSE: YAO). YAO is one of the newer entrants to the China ETF club, having made its debut in October.
While YAO's trading volume is decent for a new ETF, it is down 4% since making its debut, but that's better than the iShares FTSE/Xinhua China 25 Index (NYSE: FXI), the most popular China ETF, which is down 6% over the same time.
Nearly 35% of YAO's holdings lie in the financial service sector while energy and IT names make up another 29+%.
Big names such as PetroChina (NYSE: PTR), CNOOC (NYSE: CEO) and China Mobile (NYSE: CHL) can be found among YAO's top constituents, but the allure of YAO lies in its ability to give investors exposure to mid caps and small caps.
YAO holds 99 stocks and with a required market cap of $500 million to be considered for entrance, YAO's small and mid cap exposure won't suffer from liquidity problems or tiny price tags.
