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China Post unveils A-shares smart beta ETF

Smart_betaChinese manager China Post Global has launched what it claims to be the first smart beta exchange-traded fund (ETF) to invest in the Chinese A-shares market.

The Market Access Stoxx China A Minimum Variance Index Ucits ETF will invest in securities based on volatility and trading volume.

The fund will track the performance of the Stoxx China A900 Minimum Variance Unconstrained AM index which selects and weights stocks listed on the Shanghai and Shenzhen stock exchanges.

The ETF will have a total expense ratio (TER) of 0.65% and is intended as a cost-effective alternative to actively-managed funds.

Danny Dolan, managing director at China Post Global said: “China has for some time been the primary engine of global growth and there is significant investor demand for China exposure, though in many cases allocations are being held back by concerns about higher volatility.”

The fund is registered for sale in the UK, Austria, Germany, Italy, Luxembourg, Netherlands and Switzerland.

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