Although U.S. real estate-related exchange traded funds (ETFs) are frozen right now, China is undergoing a vast migration to the cities, which could be priming the country for a real estate boom.
Tony Sagami for Money and Markets says the Chinese government is all for this migration, and while exact numbers aren’t available, 150-200 million up-and-comers are moving into China’s largest urban cities. Cities like Shenzhen and Chongqing are transforming from small fishing towns to major modern metropolis’ in just two decades.
The Claymore/Alphashares China Real Estate (TAO) is a fairly new offering, launched on Dec. 18. The fund gives investors access to the mainland Chinese real estate market.
While China and its ETF, the iShares FTSE/Xinhua China 25 (FXI) have fallen on tough times, TAO could be a fund to keep an eye on as the country’s population becomes more urban.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.