XTrackers Harvest FTSE China A-H 50 UCITS ETF 1D

Issuer: Xtrackers

Asset Class: Equity

TER: 65bps

Trading Currency: USD

Pays Income: False

Listing Date: 30 Mar 2016

Ticker: AH50

ISIN: LU1310477036

This investment vehicle offers a unique and strategic approach to accessing the Chinese equity market. It focuses on the 50 largest and most liquid Chinese companies that are dual-listed, with shares available to domestic investors in mainland China (A-shares) and to international investors in Hong Kong (H-shares). The strategy is designed to systematically capitalize on the price differences that often exist between these two share classes for the same underlying company. For each of the 50 constituent companies, the underlying index dynamically selects the share class—either the A-share or the H-share—that is trading at a lower price, aiming to provide a more attractively valued portfolio.

By employing this "smart beta" methodology, the fund seeks to deliver exposure to the core of the Chinese economy at a potential discount compared to traditional market-cap-weighted indices that might be restricted to a single share class. This can be particularly advantageous during periods of significant valuation gaps between the onshore and offshore markets. The portfolio provides diversified exposure across key sectors driving China's growth, including financials, technology, and consumer goods. This makes it a compelling option for investors looking for a sophisticated, value-oriented way to invest in China's leading blue-chip companies, while navigating the complexities of its dual-listing system.