HAO

Guggenheim China Small Cap ETF

NAV $31.15
Change $0.39 / 1.27%
As of 2/23/18

Market Close $30.61
Change $0.00 / 0.00%
As of 2/22/18

Investment Objective

Guggenheim China Small Cap ETF (HAO) seeks investment results that correspond generally to the performance, before the fund’s fees and expenses, of the AlphaShares China Small Cap Index. HAO generally will invest in all of the securities comprising the index in proportion to their weightings in the Index.

Index Description

The AlphaShares China Small Cap Index is designed to measure and monitor the performance of publicly issued common equity securities trading on major exchange of publicly-traded Chinese small capitalization companies that are open to foreign ownership.

Fund Highlights

  • Offers potential for capital appreciation and growth through focused exposure to publically-traded, small cap companies in China.
  • Provides exposure to smaller, entrepreneurial, non-state owned enterprises in China. Historically, small and medium sized enterprises in China have contributed 50% of national tax revenue, 60% of GDP and 80% of employment. (Source: World Trade Organization, 2014).

Top Fund Holdings

Security Name % of Net Assets
ZALL GROUP LTD 1.70%
YANZHOU COAL MINING CO LTD 1.35%
ZIJIN MINING GROUP CO LTD 1.30%
ZTE CORP-H 1.20%
MOMO INC-SPON ADR 1.05%
KWG PROPERTY HOLDING LTD 1.01%
DALI FOODS GROUP CO LTD 0.92%
SHENZHEN INTL HOLDINGS 0.90%
XINYI SOLAR HOLDINGS LTD 0.89%
TSINGTAO BREWERY CO LTD-H 0.86%

Fund Profile

Fund Ticker HAO
Exchange NYSE Arca
iNAV Ticker HAO.IV
CUSIP 18383Q853
Fund Inception Date 1/30/2008
Distribution Schedule (if any) Annually
Gross Expense Ratio 0.90%
Net Expense Ratio 0.75%
Fiscal Year-End 5/31
Index Ticker ACNSC
Index Name AlphaShares China Small Cap Index
Volume 6,979
Shares Outstanding 2,950,000
Total Assets $91,886,356
Investment Adviser Guggenheim Funds Investment Advisors, LLC
Distributor Guggenheim Funds Distributors, LLC

Net Asset Value (NAV)

NAV $31.15
Change $0.39 | 1.27%
52-Week High $33.00
52-Week Low $24.43

Market Close

Closing Price $30.61
Change $0.00 | 0.00%
52-Week High $33.19
52-Week Low $24.34
Bid/Ask Midpoint $30.67
Premium/Discount -1.54%

Fund Characteristics

Number of Securities 331
Price to Earning (P/E) 22.16
Price to Book (P/B) 1.74

Fund Statistics

Beta 1.06
Standard Deviation 25.17

Current Distribution

Ex-Date 12/26/17
Record Date 12/27/17
Payable Date 12/29/17
Distribution per Share $1.049300

Index Methodology

AlphaShares China Small Cap Index

The Index was created by AlphaShares and is designed to measure and monitor the performance of publicly-traded mainland China-based small capitalization companies. AlphaShares utilizes proprietary and third-party information and research to: (1) identify potential Index constituents; and (2) calculate the number of shares of each potential Index constituent outstanding, adjusted for free-float, for usage in the Index Provider’s modified float-adjusted market capitalization weighting methodology. To ensure adequate liquidity, constituents must have a float-adjusted market capitalization maximum of $1.5 billion and a minimum of $200 million for initial inclusion in the Index. A float-adjusted capitalization of less than $1.75 billion and greater than $150 million are required for ongoing inclusion in the Index.

The Index is maintained by the Index Administrator, and is rebalanced and reconstituted annually. The AlphaShares Index Committee will meet annually in October to review the Index methodology. Any changes to the methodology will be communicated to the Index Administrator the next business day and will be publicly disclosed at least 10 days prior to the implementation of the change. Initial public offerings (“IPOs”) that meet all the eligibility criteria and fall within the top twenty stocks by capitalization of the Index will be added at the end of each calendar quarter, on the last business day of the quarter. Any addition will be funded on a pro-rata basis from the remainder of the Index, net of any deletions. A security will be deleted from the Index immediately due to bankruptcy, acquisition or merger of the company by or into another company, spin-offs, tender offers or other similar corporate actions. In the case of such deletions, no replacement will be made until the annual rebalance. Any proceeds resulting from deletions will be invested on a pro-rata basis over the remainder of the Index, net of any additions.

Index Construction

AlphaShares China Small Cap Index

To be considered for inclusion in the Index, the following criteria must be met:

  1. Chinese Companies. Only mainland China-based companies are eligible for inclusion in the Index. For purposes of the Index, companies are considered to be based in mainland China if they are so classified under the S&P BMI Country Code classification system. This system determines a company’s country of domicile by considering a number of criteria, including:
    1. the headquarters of a company,
    2. its registration or incorporation,
    3. primary stock listing,
    4. geographic source of revenue,
    5. location of fixed assets
    6. operations and
    7. the residence of senior officers.
    8. Market Capitalization. A float-adjusted capitalization maximum of $1.5 billion and a minimum of $200 million are used for initial portfolio construction and eligibility. A float-adjusted capitalization of less than $1.75 billion and greater than $150 million are required for ongoing inclusion in the Index.
    9. Investability. Only shares open to foreign ownership are included in the Index. These include all Hong Kong listed securities including China H-Shares and Red Chips, and N-Shares trading in New York and their equivalents trading in other foreign markets. China A-Shares and China B-Shares are not eligible for inclusion in the Index.
    10. Equity Securities. Only publicly issued common equity securities are eligible for inclusion in the Index. Debt or quasi-debt securities, such as convertible securities, are not eligible for inclusion.
    11. Depositary Receipts. ADRs, ADSs, GDRs and IDRs are eligible for inclusion in the Index if they meet the other eligibility criteria set forth in this section. The Index will not include different depositary receipts (or a depositary receipt and the underlying stock) of the same issuer.
    12. Target Weights. The Index uses a modified float-adjusted market capitalization weighting methodology to weight individual positions. The weight of any one GICS sector is limited to 35% of the Index at the time of each rebalance. The weight of any one position cannot be greater than 5.0% of the Index at the time of each rebalance.
    13. Rebalancing. Except in unusual circumstances (including, but not limited to, tender offers, mergers, spin-offs, or the acquisition or bankruptcy of the company or similar corporate actions), the Index is rebalanced and reconstituted annually. The AlphaShares Index Committee will meet annually in October to review the Index methodology. Any changes to the methodology will be communicated to the Index Administrator the next business day and will be publicly disclosed at least 10 days prior to the implementation of the change. IPOs that meet all the eligibility criteria and fall within the top twenty stocks by capitalization of the Index will be added at the end of each calendar quarter, on the last business day of the quarter. Any addition will be funded on a pro-rata basis from the remainder of the Index, net of any deletions. A security will be deleted from the Index immediately due to bankruptcy, acquisition or merger of the company by or into another company, spin-offs, tender offers or other similar corporate actions. In the case of such deletions, no replacement will be made until the annual rebalance. Any proceeds resulting from deletions will be invested on a pro-rata basis over the remainder of the Index, net of any additions.

Risks and Other Considerations

Risk Considerations Investors should consider the following risk factors and special considerations associated with investing in the fund, which may cause you to lose money, including the entire principal amount that you invest. China Investment Risk: Investing in securities of Chinese companies involves additional risks, including, but not limited to: the economy of China differs, often unfavorably, from the U.S. economy in such respects as structure, general development, government involvement, wealth distribution, rate of inflation, growth rate, allocation of resources and capital reinvestment, among others; the central government has historically exercised substantial control over virtually every sector of the Chinese economy through administrative regulation and/or state ownership; and actions of the Chinese central and local government authorities continue to have a substantial effect on economic conditions in China. In addition, previously the Chinese government has from time to time taken actions that influence the prices at which certain goods may be sold, encourage companies to invest or concentrate in particular industries, induce mergers between companies in certain industries and induce private companies to publicly offer their securities to increase or continue the rate of economic growth, control the rate of inflation or otherwise regulate economic expansion. From time to time, certain of the companies comprising the index that are located in China may operate in, or have dealings with, countries subject to sanctions or embargoes imposed by the U.S. government and the United Nations and/or in countries identified by the U.S. government as state sponsors of terrorism. Equity Risk: The value of the equity securities held by the fund will fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities held by the fund participate, or factors relating to specific companies in which the fund invests. Foreign Investment Risk: The fund’s investments in non-U.S. issuers, although generally limited to ADRs, may involve unique risks compared to investing in securities of U.S. issuers, including less market liquidity, generally greater market volatility than U.S. securities, and less complete financial information than for U.S. issuers. Industrial Sector Risk: The stock prices of companies in this sector are affected by supply and demand both for their specific product or service and for industrial sector products in general. The products of manufacturing companies may face product obsolescence due to rapid technological developments and frequent new product introduction. Government regulation, world events, and economic conditions may affect the performance of companies in the industrial sector. Companies in this sector may be at risk for environmental damage and product liability claims. Limited Exposure Risk: China A-Shares and China B-Shares are not eligible for inclusion in the index, even if they would otherwise qualify under the other criteria set forth under “Index Construction” found in the prospectus. China A-shares are subject to substantial restrictions on foreign investment, while the China B-Share market generally is smaller and offers less liquidity than the categories of securities that may be included in the index. However, by excluding such shares from the index, the exposure provided by the index (and thus the fund) to the Chinese presence in the sector may be more limited than would be the case if the index included China A-Shares or China B-Shares. Small Company Risk. Certain of the companies in which the fund may invest may at times be considered small-capitalization, rather than micro-capitalization companies. Investing in securities of small companies involves greater risk than is customarily associated with investing in more established companies. Micro-Cap Company Risk: Micro-cap stocks involve substantially greater risks of loss and price fluctuations because their earnings and revenues tend to be less predictable (and some companies may be experiencing significant losses), and their share prices tend to be more volatile and their markets less liquid than companies with larger market capitalizations. In addition, the funds are subject to: Non-correlation risk, Replication Management Risk, Issuer-Specific Changes and Non- Diversified Fund Risk. Please read the prospectus for more detailed Information regarding these and other risks.

Fund data is subject to change on a daily basis.

Composition is subject to change. Information provided is for illustration purposes only and may not reflect current investments by the fund. Referenced companies are not affiliated with Guggenheim Investments and Guggenheim Investments does not sponsor, endorse, sell or promote the referenced companies.


Performance displayed represents past performance, which is no guarantee of future results. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than original cost. Total returns reflect the reinvestment of all dividends. Current performance may be lower or higher than the performance data quoted. For up-to-date fund performance, including performance current to the most recent month-end, please visit the ETF performance page. ETFs are subject to third party transaction fees/commissions. Net asset value (NAV) is calculated by subtracting total liabilities from total assets, then dividing by the number of shares outstanding. Market close is the last price at which shares are traded. Fund shares may trade at, above or below NAV. For additional information, see the fund’s prospectus.




Read a prospectus and summary prospectus (if available) carefully before investing. It contains the investment objective, risks charges, expenses and the other information, which should be considered carefully before investing. To obtain a prospectus and summary prospectus (if available) click here or call 800.820.0888.

Investing involves risk, including the possible loss of principal.

Guggenheim Investments represents the investment management business of Guggenheim Partners, LLC ("Guggenheim"), which includes Security Investors, LLC ("SI"), Guggenheim Funds Investments Advisors, LLC ("GFIA") and Guggenheim Partners Investment Management ("GPIM") the investment advisors to the referenced funds.

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