Additionally, China retail sales are mixed at best this year. “July retail sales rose 13.2% year-on-year, down from 14.3% in 2012 and 17.1% in 2011, indicating slowing consumer activity,” according to Morningstar.

However, HAO’s two-year volatility is 24.7%, slightly below the 25.3% posted by FXI. Plus, HAO’s weight to the technology sector is over 12%, giving the ETF some leverage to soaring Chinese Internet stocks. Yoku Tudou (NasdaqGM: YOKU) and (NasdaqGM: SOHU) are the ETF’s two largest holdings, though HAO does not allocate more than 2.24% to any of its 251 holdings. [China Internet ETF may not Need Alibaba]

Guggenheim China Small-Cap ETF

ETF Trends editorial team contributed to this post.

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