Claymore's most recent exchange-traded fund (ETF) has been eagerly awaited. Some time ago, the fast-growing ETF company filed for an ETF covering China's real estate market. Today, the Claymore/AlphaShares China Real Estate ETF launched on the NYSE Arca platform under the symbol "TAO."
The fund is the first to combine two very hot areas of investment under one umbrella. China, of course, has been undergoing spectacular growth these past few years. At the same time, international real estate has become an area of particular interest to U.S. investors, in part because of the subprime mortgage problems in the United States.
TAO seems to combine the best of both worlds. As it develops, China's real estate markets will see more and more demand. It may be a big country, but it is also a largely rural one, with much of its business activity concentrated in some very congested cities. Real estate will therefore be at a premium as businesses struggle to gain footholds around those industrial centers.
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