A-Shares ETF Stands Out in Crowded Field

ETF Trends

There are over 260 exchange traded products offering exposure to China, the world’s second-largest economy.

Even when the multi-country ETFs and sector funds with heavy China exposure, think alternative energy plays among others, are excluded, investors are still left with a long list of China-specific ETFs. That list includes traditional fare such as the iShares China Large-Cap ETF (FXI) and focused concepts, including the Global X China Financials ETF (CHIX) . [Focus on China Financials]

Another way of looking at China ETFs is like this: There is no dearth of offerings, so new China ETFs are not needed by investors and it should be, at least in theory, difficult for new China ETFs to really standout. The db X-trackers Harvest CSI 300 China A-Shares Fund (ASHR) proves a properly positioned rookie China ETF can thrive, not just exist.

ASHR is not yet two months old and it is already flirting with $200 million in assets under management, indicating investor interest in gaining exposure to China’s previously hard-to-access A-shares markets of Shanghai and Shenzhen is strong. [Some New ETFs are Off to Fast Starts]

“The China A-shares market has long been recognized as one of the world’s most coveted investment opportunities.  Chinese A-shares are representative of world’s second-largest economy and yet in the past they have been notoriously difficult for foreign investors to access,” said Deutsche Asset & Wealth Management Managing Director Martin Kremenstein in an email exchange with ETF Trends.

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