Are you keeping up with the latest in exchange traded funds? Stay ahead of the curve with our free updates straight to your inbox by signing up for the Exchange traded funds myFT Digest. DWS recently introduced a new synthetic exchange traded fund centered around Chinese mid-cap stocks. Let’s dive into the details of this intriguing new investment opportunity:
- The Xtrackers CSI500 Swap Ucits ETF is designed to mirror the CSI 500 Net Total Return index. This index focuses on 500 medium and small-cap companies predominantly listed on the Shanghai Stock Exchange or Shenzhen Stock Exchange.
- Launched in July, this ETF boasts a competitive total expense ratio of 0.35 per cent. It is available for purchase in various European markets such as France, Germany, and Italy.
- The introduction of this ETF follows a trend where other asset managers have either closed or announced the closure of their China-focused funds due to lackluster investor interest.
- Global X ETFs, a US-based provider, is set to shutter three Chinese equity ETFs domiciled in Ireland by the end of the month. Similarly, State Street Global Advisors and Krane Funds Advisors have also dissolved their China ETFs.
- Barings and Invesco were among the asset managers that closed their China-focused funds earlier this year, citing subdued investor demand.
- Data from Morningstar reveals that China equity funds domiciled in Europe experienced net outflows of €3.9bn in the first four months of 2024.
- In response to the shifting landscape, DWS introduced an emerging market ex-China equity ETF to cater to investors looking for alternatives to reduce their exposure to China.
With changing market dynamics and investor preferences, staying informed about emerging investment opportunities is crucial. Make sure to explore different options and adapt your portfolio to align with the evolving investment landscape.
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