Two currency-hedged ETFs that track China A-Shares and one smart beta ETF were launched this week on Tuesday, October 20. Below is a look at what these ETFs mean for you, and how you can more easily get exposure to China into your portfolio.
The other exciting ETF launch last week is the Loncar Cancer Immunotherapy ETF (CNCR), which offers exposure to the pharmaceutical industry with a focus on cancer research firms.
Deutsche X-trackers CSI 300 China A-Shares Hedged Equity ETF (ASHX )
This ETF tracks the CSI 300 USD Hedged Index. The index is comprised of the largest 300 A-shares in the Shanghai and Shenzhen exchanges. The index and the ETF are currency-hedged, which means investors worried about the Chinese Yuan can sleep better at night when they hold this ETF.
ASHX is similar to Deutsche X-trackers Harvest CSI 300 China A-Shares ETF (ASHR), except it’s currency-hedged. The holdings include the ASHR ETF, as well as short CNH currency contracts. ASHX has an expense ratio of 0.85%.
Top 5 sectors:
- Financials 37.6%
- Industrials 18.6%
- Consumer discretionary 10.8%
- Materials 7.0%
- Information technology 6.3%
CSOP MSCI China A International Hedged ETF (CNHX )
This ETF tracks the performance of the MSCI China A International with CNH 100% Hedged to USD Index. The index is composed of Chinese A-shares on the Shanghai and Shenzhen stock exchanges. The index and ETF are both currency-hedged against the Chinese Yuan.
CNHX is similar to KraneShares Bosera MSCI China A ETF (KBA), except it’s currency-hedged. CNHX has an expense ratio of 0.79%.
Top 5 sectors:
- Financials 30.98%
- Industrials 18.66%
- Consumer discretionary 7.48%
- Materials 7.04%
- Information technology 5.89%
Top 5 holdings:
- China Merchants Bank-A 2.01%
- Ping An Insurance Group 1.90%
- CSR Corp LTD 1.78%
- Industrial Bank Co LTD 1.52%
- Bank of China 1.48%
CSOP China CSI 300 A-H Dynamic ETF (HAHA )
The CSOP China CSI 300 A-H Dynamic ETF (HAHA) tracks the performance of the CSI 300 Smart Index. This index includes all the securities in the CSI 300 index, which has exposure to both A-shares traded in China and H-shares traded in Hong Kong. This index switches between A-shares and H-shares depending on valuation (whichever shares are over- or under-valued). HAHA has an expense ratio of 0.75%.
The top 5 sectors:
- Financials 36.53%
- Industrials 16.31%
- Consumer discretionary 7.67%
- Materials 6.36%
- Information technology 6.14%
Top 5 holdings:
- Ping An Insurance Group Co-A 4.74%
- China Merchants Bank Co LTD 3.39%
- Citic Securities Company Limited 2.84%
- CSR Corp LTD 1.87%
- Minsheng Bank 1.86%
Loncar Cancer Immunotherapy ETF (CNCR )
The Loncar Cancer Immunotherapy ETF tracks the return of the Loncar Cancer Immunotherapy Index. The index is comprised of approximately 30 biotech or pharmaceutical securities. These firms develop and research immunotherapy (using the body’s immune system) drugs that help treat cancer.
CNCR was launched last week on Wednesday, October 14, and has an expense ratio of 0.79%.
Top 5 holdings:
- (FPRX) Five Prime Therapeutics Inc 5.78%
- (KITE) Kite Pharma Inc 5.07%
- (ZIOP) Ziopharm Oncology Inc 4.77%
- (CELG) Celgene Corp 4.53%
- (INCY) Incyte Corp 4.46%
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