NEW YORK, Dec. 11, 2018 /PRNewswire/ -- Global X Funds, the New York-based provider of exchange-traded funds (ETFs), today announced the launch of six China-focused ETFs, including five China Sector ETFs and one large-cap ETF.
The sector launches will join Global X's existing suite of six China Sector ETFs, resulting in a full offering that corresponds with each of the eleven major economic sectors identified by the Global Industry Classification Standard (GICS®). The suite will offer investors the first way to comprehensively access and evaluate the country's sectors in the liquid and transparent US ETF structure. The five sector funds launching today are:
- The Global X MSCI China Consumer Staples ETF (CHIS)
- The Global X MSCI China Health Care ETF (CHIH)
- The Global X MSCI China Information Technology ETF (CHIK)
- The Global X MSCI China Real Estate ETF (CHIR)
- The Global X MSCI China Utilities ETF (CHIU)
Global X is also launching the Global X MSCI China Large-Cap 50 ETF (CHIL), which targets the 50 largest securities in China by market capitalization. In doing so, the fund is designed to provide efficient access to many of the most influential companies in China, across a variety of listing venues and share classes.
Each of these funds track MSCI indexes that consider China A, B and H shares, Red chips, P chips and foreign listings. China A shares are listed on domestic exchanges in China and currently boast a combined market capitalization of over $6 trillion. A shares were first added to MSCI's Indexes, including China, Emerging Markets, and All Country World, in May 2018. The inclusion of this share class greatly expands the opportunity set of investible Chinese companies, which had previously been largely limited to shares listed in Hong Kong and on foreign exchanges.
"As the world's most populous nation and second largest economy continues to expand, investors will need tools for accessing specific segments of its markets," said Jay Jacobs, SVP, Head of Research and Strategy at Global X. "Until recently, investors primarily gained access to China through emerging market funds or single-country funds that paint with a broad brush and often miss or underweight attractive segments of the market. Given China's size and growth, we're thrilled to offer investors a comprehensive suite of tools that they can utilize for more specific exposures to China's complex and dynamic market."
Prior to today, Global X's existing China Sector ETFs, which launched over 8 years ago, underwent recent index changes to track MSCI indexes. These funds include:
- The Global X MSCI China Communication Services ETF (CHIC)
- The Global X MSCI China Consumer Discretionary ETF (CHIQ)
- The Global X MSCI China Energy ETF (CHIE)
- The Global X MSCI China Financials ETF (CHIX)
- The Global X MSCI China Industrials ETF (CHII)
- The Global X MSCI China Materials ETF (CHIM)
"We are pleased Global X selected MSCI indexes to bring a full suite of China sector ETFs to the market," said Chin-Ping Chia, Managing Director and Head of Research for Asia at MSCI. "The MSCI China sector indexes are designed to measure the full opportunity set of the 11 economic sectors in China. As China's equity market evolves, we anticipate there may be expanded opportunities emerging through these sectors."
Global X's suite of China Sector ETFs now totals 11 funds, and the broader family of International Access totals 21 ETFs.
ABOUT GLOBAL X
Seeking to provide access to high-quality and cost-efficient investment solutions, Global X is a New York-based sponsor of exchange-traded funds (ETFs). Founded in 2008, Global X is distinguished by its Thematic Growth, Income and International ETFs. Global X is recognized as a leader in providing intelligent investment solutions for its shareholders.
Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.
Carefully consider the funds' investment objectives, risks, and charges and expenses. This and other information can be found in the fund's prospectus which may be obtained at globalxfunds.com. Please read the prospectus carefully before investing.
Global X Management Company LLC serves as an advisor to Global X Funds. The Funds are distributed by SEI Investments Distribution Co. (SIDCO), which is not affiliated with Global X Management Company LLC. Global X Funds are not sponsored, endorsed, issued, sold or promoted by Solactive AG, FTSE, Standard & Poors, NASDAQ, Indxx, or MSCI nor do these companies make any representations regarding the advisability of investing in the Global X Funds. Neither SIDCO nor Global X is affiliated with Solactive AG, FTSE, Standard & Poors, NASDAQ, Indxx, or MSCI.
Investing involves risk, including the possible loss of principal. International investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles, or from economic or political instability in other nations. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume. Securities focusing on a single country and narrowly focused investments may be subject to higher volatility. The Global X China Funds are non-diversified.
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