Xtrackers Harvest CSI 500 China-A Shares Small Cap ETF (ASHS)

Overview

The Xtrackers Harvest CSI 500 China-A Shares Small Cap ETF (ASHS) seeks to track the performance, before fees and expenses, of the CSI 500 Index. It invests in small-cap China A-shares, providing exposure to a segment of the Chinese equity market that is often underrepresented in broader indices. The ETF aims to replicate the index by holding a portfolio of these stocks.

Reputation and Reliability

DWS, the issuer, is a well-established asset manager with a global presence. They have a reputation for providing a range of ETF products across various asset classes and geographies.

Management Expertise

DWS has a team of experienced professionals managing ETFs, with expertise in indexing, portfolio construction, and risk management.

Goal

To track the performance of the CSI 500 Index before fees and expenses.

Investment Approach and Strategy

Strategy: The ETF employs a passive management strategy, seeking to replicate the performance of the CSI 500 Index.

Composition The ETF holds stocks of small-cap companies listed on the Shanghai and Shenzhen stock exchanges and traded in Chinese Yuan (CNY).

Market Share: The ETF holds a relatively small market share within the China A-shares ETF market.

Total Net Assets (AUM): 80140000

Key Competitors

• KraneShares Bosera MSCI China A Share ETF (KBA)
• iShares MSCI China A ETF (CNYA)

Competitive Landscape

The China A-shares ETF market is competitive, with multiple ETFs vying for investor assets. ASHS offers exposure to small-cap A-shares which differentiates itself from some broader A-share ETFs, but it faces competition from ETFs with similar strategies and broader market indices. Its relatively small AUM indicates lower investor interest compared to some competitors.

Historical Performance: Historical performance data should be gathered from financial data providers to show yearly returns. The performance depends on the underlying CSI 500 index performance.

Benchmark Comparison: The ETF's performance should closely track the CSI 500 Index. Any deviations would be due to tracking error, fees, and expenses.

Expense Ratio: 0.65

Average Trading Volume

The average trading volume of ASHS is relatively low, which can impact the ease of buying and selling shares. Data must be retrieved from a financial data provider to show its average trading volume.

Bid-Ask Spread

The bid-ask spread for ASHS can be wider than more liquid ETFs, potentially increasing the cost of trading for investors. Data must be retrieved from a financial data provider to show its bid-ask spread.

Market Environment Factors

Economic growth in China, regulatory changes affecting Chinese companies, and global market sentiment all affect ASHS. Changes in trade relations and global risk appetite have big effect on Chinese markets.

Growth Trajectory

The growth trajectory of ASHS depends on investor demand for China A-shares and the performance of the CSI 500 Index. Any shifts in its investment strategy or significant changes in its holdings need to be monitored.

Competitive Edge

ASHS offers focused exposure to China A-shares small-cap companies, which is a distinct niche within the broader China equity market. This allows investors to target specific companies that can benefit from China's economic growth. The ETF follows a passive approach, which reduces costs compared to actively managed China funds. However, its smaller size and lower liquidity compared to its key competitors are a disadvantage, limiting investor appeal.

Volatility

ASHS has a historical volatility that corresponds with the underlying Chinese market, which can be high compared to developed markets. China A-shares are susceptible to large market fluctuations.

Market Risk

ASHS is subject to various market risks, including economic risks in China, regulatory risks, currency risks, and geopolitical risks affecting China and international trade.

Ideal Investor Profile

The ideal investor is someone seeking exposure to the Chinese small-cap A-share market and is comfortable with the associated risks, including higher volatility and regulatory uncertainties. This may be part of a broader emerging market or China-focused allocation.

Market Risk

ASHS may be suitable for long-term investors with a high-risk tolerance, not active traders seeking short-term profits due to illiquidity.

The Xtrackers Harvest CSI 500 China-A Shares Small Cap ETF (ASHS) offers targeted exposure to the Chinese small-cap A-share market. It tracks the CSI 500 Index and follows a passive investment approach. Investors should be aware of the ETF's relatively small size, illiquidity and the volatility associated with China's A-share market. ASHS is suitable for long-term investors with a high-risk tolerance looking to diversify their portfolio with Chinese small-cap equities.

Data Sources:

• DWS
• Bloomberg
• Morningstar

Disclaimers:

The information provided is for informational purposes only and should not be considered investment advice. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor.