The Halter USX China Index, the benchmark underlying the PowerShares Golden Dragon Halter USX China Fund (PGJ), is expanding its holdings by adding another 20 equities. The Index is also removing China INSOnline Corp, bringing the total number of stocks to 139. The benchmark, which consists of U.S. listed companies that do a majority of their business in China, will now include more energy, health, and service companies.
These actions further diversify PGJ across all sectors of the economy, lessening exposure to the telecommunication sector. The new constituents are primarily small cap companies listed on the Nasdaq Exchange, meaning that the new PGJ will have more exposure to small cap firms.
The changes come to a fund that has performed very well in 2009; PGJ has gained almost 50% year to date. PGJ is an attractive investment option for investors looking to add exposure to China but looking to avoid direct investments in companies traded on Chinese stock exchanges. China equity ETFs have seen huge surges in demand this year as investors regain an appetite for risk. PGJ has seen cash inflows of $78 million through August, and now has more than $400 million in assets under management.
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