London Calling for New A-Shares ETF

ETF Trends

The db X-trackers Harvest CSI 300 China A-Shares Fund (ASHR) is barely more than a month old and it is already accurate to call the new fund one of the most successful U.S. ETF launches of 2013.

Deutsche Asset & Wealth Management and Harvest Global Investments will look to replicate ASHR’s success with a Europe-listed version of the ETF slated to launch in January. Luxembourg’s financial regulator approved the launch of a European equivalent of ASHR last month and it is expected the new ETF will debut in London Jan. 16, 2014, according to AsianInvestor.

Deutsche Asset & Wealth Management previously told AsianInvestor it hopes to list China A-shares ETFs across Europe. The unit of Germany’s Deutsche Bank has ETFs in France, Germany, Italy, Switzerland and the U.K.

ASHR is the first U.S.-listed ETF to offer investors direct access to stocks trading in Shanghai and Shenzhen, China’s A-shares markets. Older versions of China A-shares ETFs hold derivatives, not equities.

ASHR, which debuted in early November, is already flirting with $200 million in assets under management, easily making it one of the most successful new ETFs of 2013. [These 10 New ETFs Have Rapidly Gained Assets]

Harvest is a Renminbi Qualified Foreign Institutional Investor (RQFII), which means it meets Chinese regulatory requirements to be a foreign owner of A-shares.

ASHR tracks the CSI 300 Index, a collection of the large-caps including China Minsheng Banking, China Merchants Bank, Industrial Bank, Ping An Insurance, Shanghai Pudong Development Bank, Haitong Securities and China Vanke. [China A-Shares ETF Officially Debuts]

ASHR’s underlying index allocates 38.6% of its weight to the financial services sector, 13.1% to industrials and almost 11.3% to consumer discretionary names.

ETF Trends editorial team contributed to this post.

 

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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