This ETF (HAO) aims to track the performance of the AlphaShares China Small Cap Index, which was designed to track the performance of publicly-traded small cap stocks in mainland China.

According to the launch site, this ETF launched with only 200,000 shares outstanding and it traded 2,800 shares yesterday.  It was also listed as having a 5.32% Bid/Ask premium and has 120 securities in the AlphaShares China Small Cap Index (ACNSC).

This ETF actually is fairly distributed after looking at the holdingsversus the weighting of each.  Many ETF’s tracking specific markets andsectors have a few components making up a large percentage of theentire group.  Of the top 20 holdings below, this only comprises about37% of the entire ETF.

Below is a snapshot of the top 20 holdings, although you can see the full list here.
BEIJING ENTERPRISES HOLDINGS    2.97 %
CHAODA MODERN AGRICULTURE      2.95 %
SINOFERT HOLDINGS LTD                    2.45 %
WUXI PHARMATECH INC – ADR            1.92 %
SHANGHAI JIN JIANG INT’L                    1.89 %
CHINA SHIPPING CONTAINER              1.89 %
NETEASE.COM INC-ADR                         1.88 %
SOHU.COM INC                                         1.84 %
CHINA COMMUNICATIONS SERVICES 1.82 %
PORTS DESIGN LTD                                 1.74 %
CNPC HONG KONG LTD                          1.74 %
JIANGSU EXPRESSWAY CO LTD           1.72 %
TSINGTAO BREWERY CO LTD               1.72 %
DONGFANG ELECTRIC CORP LTD      1.67 %
GUANGDONG INVESTMENT LTD          1.67 %
CHINA SOUTHERN AIRLINES CORP    1.62 %
SINOPEC SHANGHAI PETROCHEMICAL 1.62 %
CHINA EASTERN AIRLINES CO              1.46 %
MAANSHAN IRON & STEEL                      1.45 %
KWG PROPERTY HOLDING                     1.44 %

Jon C. Ogg
January 31, 2008