XTrackers FTSE China 50 UCITS ETF 1C

Issuer: Xtrackers

Asset Class: Equity

TER: 60bps

Trading Currency: GBX

Pays Income: False

Listing Date: 07 Sep 2007

Ticker: XX25

ISIN: LU0292109856

This fund provides targeted exposure to China's domestic equity market, specifically focusing on China A-shares. These are shares of mainland China-based companies that trade on the Shanghai and Shenzhen stock exchanges. Historically, access to this market was restricted for foreign investors, but recent reforms have gradually opened it up. Investing in A-shares offers a direct way to participate in the growth story of the world's second-largest economy, driven by its vast consumer market, technological advancements, and ongoing urbanization. The underlying portfolio is composed of large and mid-capitalization companies across various sectors, offering a diversified snapshot of China's key industries, from financials and industrials to consumer staples and technology.

An investment in this product can serve as a strategic allocation within an emerging markets portfolio or as a standalone position for those bullish on China's long-term economic prospects. The fund's composition reflects the domestic Chinese economy more closely than funds tracking H-shares (listed in Hong Kong) or American Depositary Receipts (ADRs). This provides a unique diversification benefit, as A-shares often exhibit a lower correlation with global equity markets. By tracking an index of these domestic shares, the fund allows investors to gain exposure to companies that are at the heart of China's internal growth engine, potentially capturing opportunities that are not available through other international Chinese equity exposures.