WisdomTree has launched the first European-listed ETF to combine exposure to all China equity share classes in a single Ucits ETF.
The ICBCCS WisdomTree S&P China 500 Ucits ETF uses a sector-based stock selection process then allows the index to reflect the sector allocation at the broad China index level.
It also includes A shares, which are primarily owned by mainland citizens and can be difficult for foreign investors to buy. It also includes Hong Kong-listed equities.
Nizam Hamid, ETF strategist at WisdomTree Europe, says: “Market access to Chinese equities has long been an issue for investors and the creation of a UCITS ETF that covers all the relevant share classes in a single product brings substantial benefit
“It represents a cost effective means of allocating to a broad index whilst removing the operational and administrative burdens often associated with accessing A-shares.”
The fund is launched in partnership with ICBC Credit Suisse Asset Management.