Daily ETF Watch: New Broad China Fund

Market Vectors is looking to launch a broad-based China-focused ETF.

Reviewed by: Hung Tran
Edited by: Hung Tran

Market Vectors is looking to launch a broad-based China-focused ETF.

Market Vectors has put into registration a broad China-focused ETF that will invest in listed mainland securities as well as shares trading on the Hong Kong Stock Exchange at a time when issuers are scrambling to give investors direct access to the last major niche market that has yet to be tapped fully.

The Market Vectors ChinaAMC MSCI All China ETF (ALCH) will track the MSCI All China Index, which comprises China A-share, China B-share, China H-share, China Red Chip and China P-Chip share classes as well as securities of Chinese companies listed in the U.S. and Singapore, according to the filing.

As of March 3, approximately half of the index comprises A-shares with an emphasis on the financial services sector as well as the information technology and industrials sector.

The fund has an expense ratio of 0.78 percent, or $78 for every $10,000 invested.

The new offering follows the recent launch of the KraneShares Bosera MSCI China A Shares ETF (KBA) and the debut of the first-to-market China mainland securities ETF db X-trackers Harvest CSI 300 China A-Shares ETF (ASHR) last November.

Deutsche Bank has also filed regulatory paperwork for a China-focused fund, dubbed the db X-trackers Harvest MSCI All China Equity Fund (ASHA), to invest directly in the broadest possible spectrum of large- and mid-capitalization Chinese companies.

“Now that these issuers have established relationships with their respective subadvisors in Hong Kong, you can expect a flood of ETF launches in the coming years,” according to Dennis Hudachek, an ETF analyst at ETF.com, in a recent blog.


KraneShares has put into registration a China-focused ETF to invest in investment-grade, on-shore renminbi-denominated bonds to give investors exposure to fixed income in the world’s second-largest economy.

The KraneShares E Fund China Commercial Paper ETF will track the ChinaBond Diversified High Grade Commercial Paper Index and will be subadvised by E Fund Management based in Hong Kong. The index will be composed of commercial paper issued by sovereign, quasi-sovereign and corporate issuers in the People’s Republic of China.

Associated fees and tickers were not yet made available in the filing.


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