Invest In Ishares China Large-Cap Etf: A Guide

how to invest in ishares china large-cap etf

The iShares China Large-Cap ETF seeks to track the investment results of the FTSE China 50 Index, which is composed of large-capitalization Chinese equities that trade on the Hong Kong Stock Exchange. The ETF provides exposure to 50 of the largest Chinese stocks in a single fund and is intended for investors seeking capital growth with a high to very high risk/return profile. The ETF's total expense ratio is 0.74% and it is available for trading on the Australian Securities Exchange (ASX) and other online brokerage platforms.

Characteristics Values
Investment Objective Track the investment results of the FTSE China 50 Index composed of large-capitalization Chinese equities that trade on the Hong Kong Stock Exchange
Investment Strategy Invest at least 80% of its assets in the component securities of its underlying index and in investments that have economic characteristics that are substantially identical to the component securities of its underlying index
Management Fee 0.60%
Expense Ratio 0.74%
Net Assets $4.391B
Shares Outstanding 186.9M
Distribution Frequency Quarterly

shunadvice

Exposure to large Chinese companies listed in Hong Kong

The iShares China Large-Cap ETF provides exposure to large Chinese companies listed in Hong Kong. The fund aims to provide investors with the performance of the FTSE China 50 Index, which is composed of 50 large-capitalization Chinese equities that trade on the Hong Kong Stock Exchange. This includes companies such as Alibaba Group Holding Ltd., Tencent Holdings Ltd., China Construction Bank Corp., and Industrial & Commercial Bank of China Ltd.

By investing in this ETF, individuals can gain access to 50 of the largest and most liquid Chinese companies in a single fund. The fund is designed for investors seeking capital growth, using the product as a core component of their portfolio, with a minimum investment timeframe of 5 years, and a high to very high-risk/return profile.

The iShares China Large-Cap ETF can be traded online through various brokerage platforms and is available on the Australian Securities Exchange (ASX).

A Guide to Investing in ASX 200 ETFs

You may want to see also

shunadvice

Access to 50 of the largest Chinese stocks in a single fund

The iShares China Large-Cap ETF offers access to 50 of the largest Chinese stocks in a single fund. The fund aims to provide investors with the performance of the FTSE China 50 Index, which is composed of large-capitalization Chinese equities that trade on the Hong Kong Stock Exchange. This means that by investing in this ETF, you will get exposure to 50 of the largest and most liquid Chinese companies listed in Hong Kong.

The fund generally invests at least 80% of its assets in the component securities of its underlying index, seeking to track the investment results of the index. The fund is non-diversified and is designed for investors seeking capital growth, using the product as a core component of their portfolio, with a minimum investment timeframe of 5 years, and a high to very high-risk profile.

The iShares China Large-Cap ETF can be traded through your brokerage, and it is available on the Australian Securities Exchange (ASX) like other listed securities. It is important to carefully consider the fund's investment objectives, risk factors, and charges before investing.

shunadvice

Use to express a single market view

The iShares China Large-Cap ETF can be used to express a single market view. The ETF provides exposure to large Chinese companies listed in Hong Kong and access to 50 of the largest Chinese stocks in a single fund. The fund aims to provide investors with the performance of the FTSE China 50 Index, which is composed of large-capitalization Chinese equities that trade on the Hong Kong Stock Exchange. The fund generally invests at least 80% of its assets in the component securities of its underlying index. The ETF is appropriate for investors seeking capital growth, with a minimum investment timeframe of 5 years, and a high to very high-risk profile.

The iShares China Large-Cap ETF offers a convenient way to gain exposure to the Chinese market and provides investors with a diversified portfolio of large-cap Chinese stocks. The fund's performance is linked to the FTSE China 50 Index, which is designed to measure the performance of the largest and most liquid Chinese companies trading on the Hong Kong Stock Exchange.

By investing in this ETF, individuals can express a single market view on China's large-cap stocks. This means they are expressing their outlook on the overall performance of this specific market segment. The ETF provides a simple and efficient way to gain exposure to a basket of large Chinese companies, offering diversification and potentially lower risk compared to investing in individual stocks.

It is important to note that investing in the iShares China Large-Cap ETF comes with certain risks, as outlined in the fund's prospectus. Investors should carefully consider these risks and seek financial advice before making any investment decisions.

shunadvice

The fund is non-diversified

The iShares China Large-Cap ETF is a non-diversified fund. This means that the fund is not bound by the diversification requirements of the Investment Company Act of 1940. Non-diversified funds can allocate large amounts (5% or more) of their assets to a single security or a few securities within a specific industry.

The iShares China Large-Cap ETF aims to provide investors with the performance of the FTSE China 50 Index, which is composed of large-capitalization Chinese equities that trade on the Hong Kong Stock Exchange. The fund generally invests at least 80% of its assets in the component securities of its underlying index and in investments with similar economic characteristics.

Non-diversified funds typically take a more focused approach to asset allocation, investing in a specific asset category or industry. This can allow investment managers to concentrate their research efforts and think strategically. However, it also means that the fund's performance is closely tied to the performance of a single company or industry. For example, if a few companies in a particular industry experience negative events, it can hurt the prices of all stocks in that industry.

In contrast, diversified funds invest in a wide range of securities across multiple asset categories and industries. This ensures that the fund's performance is not dependent on a single company or industry.

The iShares China Large-Cap ETF provides exposure to large Chinese companies listed in Hong Kong and access to 50 of the largest Chinese stocks in a single fund. It can be used to express a single market view or a single country view.

It's important to note that non-diversification does not imply higher risk. The risk of a fund depends on its underlying holdings, not its structure. However, non-diversified funds may be more susceptible to market risk, which refers to the day-to-day volatility of stock and bond markets.

shunadvice

The fund's performance is based on the FTSE China 50 index

The iShares China Large-Cap ETF fund's performance is based on the FTSE China 50 Index, which is designed to measure the performance of 50 of the largest and most liquid Chinese companies that trade on the Hong Kong Stock Exchange. The fund aims to provide investors with the performance of this index, before fees and expenses.

The FTSE China 50 Index offers investors exposure to a diversified basket of stocks, which can be appealing for investors seeking broad market exposure. The index is composed of large-capitalization Chinese equities that trade on the Hong Kong Stock Exchange, providing access to 50 of the largest Chinese stocks in a single fund.

The fund generally invests at least 80% of its assets in the component securities of its underlying index and in investments with economic characteristics that are substantially identical to the component securities of its underlying index. This underlying index is the FTSE China 50 Index, which is designed to measure the performance of the largest companies in the Chinese equity market that trade on the Hong Kong Stock Exchange and are available to international investors.

The FTSE China 50 Index is a good option for investors seeking exposure to the Chinese market, as it provides access to a diverse range of large-capitalization Chinese equities. The index's performance can be tracked through various methods, such as purchasing individual stocks within the index or investing in exchange-traded funds (ETFs) that follow the index, like the iShares China Large-Cap ETF.

Frequently asked questions

The iShares China Large-Cap ETF is an exchange-traded fund that tracks the performance of the largest Chinese companies that trade on the Hong Kong Stock Exchange. The fund aims to provide investors with exposure to large Chinese companies and is non-diversified.

You can trade the iShares China Large-Cap ETF through an online brokerage firm or by contacting a financial professional.

The total expense ratio of the iShares China Large-Cap ETF is 0.74%.

Written by
Reviewed by
Share this post
Print
Did this article help you?

Leave a comment