Daily ETF Watch: DB’s All-China ETF Live

Deutsche Bank’s latest China ETF gives investors wide access to the country’s complex equities universe.

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Reviewed by: Hung Tran
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Edited by: Hung Tran

Deutsche Bank’s latest China ETF gives investors wide access to the country’s complex equities universe.

Deutsche Bank today is launching its much-anticipated db X-trackers Harvest MSCI All China Equity Fund (CN), which will invest directly in the broadest possible spectrum of large- and mid-capitalization Chinese companies, according to a NYSE communique.

Competition is heating up among issuers, including Market Vectors, which has put into registration a similar broad China-focused ETF, to offer investors broad access to the world’s second-largest economy in the form of shares listed in Hong Kong, the mainland and the U.S.

Both DB’s and Market Vectors’ funds will track the MSCI All China Index, which is designed to capture large- and mid-capitalization representation across all China securities listed in China, Hong Kong, the U.S. and Singapore.

Market Vector’s proposed offering has an expense ratio of 0.78 percent, or $78 for every $10,000 invested while CN’s expense ratio is 0.71 percent, or $71 for every $10,000 invested, according to a fund overview.

Launches

BlackRock has launched the first locally listed ETF in Brazil with international exposure, dubbed the iShares S&P 500, which began trading yesterday on the BM&FBOVESPA in São Paulo under the ticker “IVVB11.”

The new offering will be denominated in Brazilian reais, and will invest directly in the iShares Core S&P 500 ETF (IVV | A-97), which is focused on U.S. large-cap stocks. The S&P 500 Index had a volatile first quarter and has gained about 1.6 percent year-to-date, after surging 32 percent in 2013.

Investors are gleaning this week’s new batch of earnings reports for positive signs that the economy is finally on firmer ground after an unusually cold winter became a scapegoat for everything from weak economic data to poor housing and labor reports.

IVVB11, the Brazil-listed version of IVV, has an expense ratio of 0.27 percent, or $27 for every $10,000 invested.

Filings

The $19.4 Vanguard Total Bond Market ETF (BND | A-96) is the latest ETF from the Malvern, Pa.-based firm to have its expense ratio lowered as a matter of course as assets in the strategy increase.

BND’s expense ratio has dropped to 0.08 percent, or $8 for every $10,000 invested, from 0.10 percent. Since last January, BND has experienced inflows of $1.84 billion through April 28, according to data compiled by ETF.com Analytics.

Vanguard on April 28 reported lowered expense ratios on eight of its ETFs and increased the fees for one other, a reflection of expenses incurred indirectly by the funds through investments in business development companies, according to the firm.

 

Hung Tran is a former staff writer for etf.com.