DWS has switched the index and lowered the fee of its $193m FTSE China 50 ETF as investors demand broader exposure to China “beyond the top stocks”.
The Xtrackers FTSE China 50 UCITS ETF (XX2D) will see its index switched from the FTSE China 50 index Chinese stocks to the MSCI China A Inclusion index.
XX2D will go from capturing 50 of the largest stocks listed on the Hong Kong stock exchange to capturing large and mid-cap Chinese companies traded on domestic exchanges and included in the MSCI Emerging Markets index.
As a result of the index switch, XX2D will be renamed to the Xtrackers MSCI China A UCITS ETF.
The fee will also be lowered from 0.60% to 0.35%, undercutting the iShares MSCI China A UCITS ETF (CNYA) by 5 basis points.
A spokesperson from DWS told ETF Stream: “Investors who continue to invest in China are seeking more granular exposure to the Chinese market, beyond the top stocks.
“Xtrackers offers a wide range of onshore and broad market exposures, including various market cap segments, ESG options, and local indices. The China A-share index is a valuable addition, especially for MSCI-minded international investors, enabling more detailed portfolio construction.”
The HSBC MSCI China A Inclusion UCITS ETF (HMCT) remains the lowest-fee China A-Share ETF in Europe, with a total expense ratio (TER) of 0.30%.
Elsewhere, DWS switched the index of its $56m emerging markets ETF to exclude China in a bid to meet investor demand for more “regionally differentiated investments”.
