ICBC CS S&P China 500 UCITS ETF

Issuer: KraneShares

Asset Class: Equity

TER: 38bps

Trading Currency: GBP

Pays Income: False

Listing Date: 16 Oct 2023

Ticker: CHIP

ISIN: IE0001QF56M0

This investment vehicle is designed to offer comprehensive access to the Chinese equity market by tracking the performance of the S&P China 500 Index. This benchmark is notable for its broad and inclusive approach, capturing the 500 largest and most liquid Chinese companies, irrespective of their listing location. Unlike indices that focus on a single share class, this fund provides a holistic view by including onshore A-shares alongside offshore listings such as H-shares and US-listed depositary receipts. This structure ensures a diversified portfolio that mirrors the full breadth of the Chinese economy, covering all major sectors from technology and consumer discretionary to financials and industrials, offering a well-rounded representation of the country's market leaders.

By employing a physical replication strategy, the fund holds the underlying securities of the index directly, providing investors with tangible exposure to the assets. The methodology of the underlying index ensures that the portfolio is composed of significant players within China's evolving economic landscape. This includes both established, large-cap state-owned enterprises and dynamic, new-economy companies that are driving innovation and growth. The all-encompassing nature of the index construction allows investors to participate in the performance of the entire Chinese equity universe through a single, transparent, and efficiently managed product.

This fund is suitable for investors looking to establish a core strategic allocation to China within their global or emerging market portfolios. It offers a straightforward solution for gaining diversified exposure to the world's second-largest economy, eliminating the complexities associated with investing in various Chinese share classes individually. For those with a long-term investment horizon and a belief in the continued growth trajectory of China, this product provides a robust and representative tool to capitalize on the opportunities within this major global market.