An exchange traded fund tracking real estate stocks in China and Hong Kong fell 3% on Wednesday and recorded a new 52-week low. The ETF’s roughly 20% loss so far this year is a sign China’s property bubble is bursting.
ETF Spotlight on Guggenheim China Real Estate ETF (NYSEArca: TAO), part of an ongoing series.
Assets: $27 million.
Objective: The Guggenheim China Real Estate fund tries to reflect the performance of the AlphaShares China Real Estate Index, which holds publicly-traded companies and real estate investment trusts (REITs) that generate a majority of their revenues from real estate development, management and/or ownership of property in China, Hong Kong and Macau.
Holdings: Top holdings include The Link REIT 6.91%, China Overseas Land & Inv 5.91%, Cheung Kong Holdings Ltd 5.15%, Wharf Holdings Ltd 5.15% and Henderson Land Development 5.13%.