Posted inHead To Head, News, Research

HEAD-TO-HEAD: Seven China equity ETFs compared

FSA compares no fewer than seven China equity ETFs available to Hong Kong investors tracking the same index, the CSI 300.
by Fund Selector Asia
Conclusion

1234567

In choosing an ETF, one should take into account its ability to track the underlying index and the fees it charges. While many quantitative and qualitative approaches to evaluation of ETFs exist, FSA has chosen to look at the three-year return (as the proxy of the tracking difference), the tracking error, the fees and the fund size, since the economy of scale tends to make ETFs more efficient.

Based on the above criteria, the top choice for tracking the CSI 300 is the ChinaAMC CSI 300 Index ETF. The fund has delivered a three-year return that’s closest to that of the index. It has the second lowest tracking error among the seven products. The fund’s ongoing charge is around the median for China equity ETFs.

Many investors seem to share that view, judging by the fund’s assets, the largest in its category.

Hong Kong has had dozens of ETFs delisted and an often-cited reason is the inability to gather sufficient assets. The C Shares ETF, with $1.6m in assets, could be going down the delisting route if it fails to accumulate more assets.

1234567

Related Stories

FSA SPY

The FSA Spy market buzz – 13 December 2024

M&G’s positive outlook; Wisdom from Schroders’s podcast; Alliance Bernstein on the power of curiosity; Janus Henderson on responsible AI; China’s retirement revolution; Apple and much more.

Part of the Mark Allen Group.