Top China ETF: Claymore/AlphaShares China Small Cap (HAO)
NEW YORK (TheStreet) — In a head-to-head competition with the best China ETFs and mutual funds, my pick for the best China ETF, Claymore/AlphaShares China Small Cap(HAO), comes out on top. Returns are through July 31, other data is the most recently reported.
In addition to HAO, I compared two ETFs — PowerShares Golden Dragon (PGP) and iShares FTSE/Xinhua China 25(FXI) — plus two mutual funds — Matthews China(MCHFX) and Fidelity China Region(FHKCX). As of July 31, the largest of these funds was FXI, with $11 billion in assets. Both mutual funds had just under $2 billion in assets. PGJ had $450 million in assets, while HAO had $175 million, large enough to provide ample liquidity. In terms of fees, the ETFs are cheaper. PGJ is the lowest, at 0.6 % of assets; HAO is next, at 0.7 %; then FXI, at 0.74 % of assets. MCHFX costs 1.23 % compared to 0.96 % for FHKCX. Clearly, there’s a price to having a manager watching your investment, but Fidelity does manage to get reasonably close to the cost of ETFs.
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