VanEck Vectors New China ESG UCITS ETF
| Issuer: Van Eck |
| Asset Class: Equity |
| TER: 60bps |
| Trading Currency: USD |
| Pays Income: False |
| Listing Date: 29 Sep 2021 |
| Ticker: CNEW |
| ISIN: IE0000H445G8 |
This actively managed fund offers exposure to the structural transformation of China's economy. It strategically shifts focus away from the traditional, state-owned enterprise-dominated sectors like heavy industry and financials, often termed 'Old China'. Instead, it concentrates on the dynamic and rapidly growing segments of the market poised to benefit from long-term secular trends. This forward-looking approach seeks to capture the growth potential of companies driving innovation and catering to the evolving demands of the Chinese populace, allowing for flexibility to select what the managers believe are the most promising opportunities within this evolving landscape.
The core driver of this economic transformation is the rise of China's middle class, which boasts increasing disposable income and a growing appetite for high-quality goods and services. This fund specifically targets companies positioned to capitalize on this powerful domestic consumption trend. Key sectors of focus include technology, e-commerce, healthcare, and consumer discretionary goods. By investing in these areas, the portfolio aims to gain exposure to businesses at the forefront of China's shift towards a more balanced and sustainable economic model, driven less by exports and investment, and more by internal demand and innovation.
Ultimately, this investment provides a targeted way to participate in the next phase of China's economic development. It offers a portfolio that is structurally different from traditional broad China market indices, which often have heavy weightings in 'Old China' sectors. For investors seeking a concentrated approach to the future direction of the world's second-largest economy and its most dynamic sectors, this fund presents a compelling proposition, aiming to identify the future leaders and innovators shaping the domestic Chinese market.
