ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Energy Infrastructure
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Free Cash Flow
    • Gold/Silver/Critical Minerals
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Modern Alpha
    • Night Effect
    • Portfolio Strategies
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Core Equity Channel
  2. China A-Shares Make Their Way Into a Major EM ETF
Core Equity Channel
Share

China A-Shares Make Their Way Into a Major EM ETF

Frank HolmanJun 26, 2019
2019-06-26

Some of the largest international ETFs trading in the U.S. target FTSE Russell indexes, including the Vanguard FTSE Emerging Markets ETF (VWO A+). Some of those funds will soon see increased China exposure as A-shares stocks join FTSE Russell benchmarks.

This month, the index provider is starting its previously announced effort to include the stocks trading on mainland China in some of its widely followed international indexes.

“China A Shares have been added to the FTSE Emerging Index as of Monday June 24th, 2019,” said FTSE Russell in a statement out Monday. “This marks the first time Mainland China listed companies, or ‘China A Shares’, will be included in FTSE Global Equity Index Series (GEIS). Originally announced in September 2018, the inclusion of over 1,000 small, mid and large-cap China A Shares are expected to constitute c. 5.5% of the total FTSE Emerging Index, representing initial net passive inflows of $10 billion of assets under management.”

Global investors traditionally accessed Chinese company stocks through listings through Hong Kong or New York Stock Exchange, but the recent inclusion of mainland Chinese A-shares to these widely observed global benchmarks now makes Chinese markets more important than ever, potentially opening up a closed off market to a huge pool of potential investors.

The Entry of A-shares

VWO is the world’s largest emerging markets exchange traded fund by assets.

“The drivers for this are clear. Over the past decade, China has made great strides in opening up its market as part of an extraordinary economic transformation over the last 40 years which has seen it grow to become the second largest economy in the world,” said Jessie Pak, Managing Director, Asia, FTSE Russell. “Like any emerging market, development is not linear and we will measure progress at the completion of each phase.”

The entry of A-shares into FTSE indexes starts this month and a second round of inclusion will happen in September. The third and final tranche occurs next March. Twenty percent of the A-shares going into FTSE indexes go in this month with the inclusion percentage jumping to 40% in the next two tranches.

Based on June 19 prices, the combined market value of A-shares entering FTSE indexes over the three inclusion periods is about $355 billion.

For more investment strategies, visit our Core ETF Channel.


Content continues below advertisement

Loading Articles...
Help & Info
  • Contact Us
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X