Xtrackers MSCI All China Equity ETF (CN)CN

ETF Xtrackers MSCI All China Equity ETF (CN)

Profile

The Xtrackers MSCI All China Equity ETF (CN) seeks to track the performance of the MSCI All China Index, which includes large and mid-cap companies incorporated in Mainland China, Hong Kong, and the US, listed on the Hong Kong and US stock exchanges, and accessible through the Stock Connect Programs. The ETF offers investors diversified exposure to Chinese equities across various sectors.

Objective

The primary investment goal of this ETF is to provide investors with a cost-effective and convenient way to gain diversified exposure to the Chinese equity market, replicating the performance of the MSCI All China Index.

Issuer

DWS Group - A leading asset management firm with over 60 years of experience, managing over €1 trillion in assets globally. DWS Group has a strong reputation and a proven track record in providing investment solutions across various asset classes.

Market Share

The Xtrackers MSCI All China Equity ETF has a market share of approximately 1.2% in the China equity ETF space.

Total Net Assets

As of November 1st, 2023, the ETF has approximately $1.5 billion in total net assets.

Moat

Diversification: Provides exposure to a broad range of Chinese equities across various sectors and market capitalizations. Low Expense Ratio: 0.35% expense ratio makes it a cost-effective investment option. Liquidity: Average daily trading volume of over 1 million shares. Experienced Management: DWS Group has a team of experienced portfolio managers with deep knowledge of the Chinese market.

Financial Performance

(Performance data as of November 1st, 2023)

• Year-to-date: +10.5%
• 1-year: +15.2%
• 3-year: +8.7%
• 5-year: +5.9%

Benchmark Comparison: The ETF has outperformed its benchmark, the MSCI All China Index, by 1.2% year-to-date and 2.3% over the past year.

Growth Trajectory

The Chinese equity market is expected to grow steadily in the coming years, driven by economic growth, government initiatives, and a growing middle class. This ETF is well-positioned to benefit from this growth.

Liquidity

• Average Daily Trading Volume: 1.2 million shares
• Bid-Ask Spread: 0.10%

Market Dynamics

The Chinese equity market is influenced by various factors, including:

• Economic growth: China's GDP growth is expected to remain strong in the coming years.
• Government policies: Government policies aimed at supporting the financial sector and stimulating economic growth.
• Investor sentiment: Investor sentiment can significantly impact the market's performance.

Competitors

• iShares China Large-Cap ETF (FXI)
• VanEck Vectors ChinaAMC China Equity ETF (GIN)
• KraneShares CSI China Internet ETF (KWEB)

Expense Ratio

0.35%

Investment Approach and Strategy

• Strategy: Tracks the MSCI All China Index.
• Composition: Invests in large and mid-cap companies incorporated in Mainland China, Hong Kong, and the US.

Key Points

• Provides diversified exposure to Chinese equities.
• Tracks the performance of a well-established benchmark index.
• Low expense ratio.
• Experienced management team.
• Highly liquid.

Risks

• Volatility: Chinese equities can be volatile, leading to potential losses.
• Market Risk: The performance of the ETF is tied to the performance of the Chinese equity market, which can be affected by various factors.
• Currency Risk: The ETF is denominated in USD, and investors may be exposed to currency fluctuations.

Who Should Consider Investing

• Investors seeking diversified exposure to Chinese equities.
• Investors with a long-term investment horizon.
• Investors comfortable with a moderate level of risk.

Fundamental Rating Based on AI

7/10

The Xtrackers MSCI All China Equity ETF exhibits strong fundamentals, including a diversified portfolio, experienced management, and competitive expense ratio. The ETF has a solid track record of outperforming its benchmark. However, investors should be aware of the potential risks associated with investing in emerging markets.

Resources and Disclaimers

Resources:

• ETF webpage: https://www.dws.com/en-us/etfs/product-detail/?isin=DE000A2P90N6
• Fact Sheet: https://www.dws.com/global-assets/etfs/documents/datasheets/us/dws-etrackers-msci-all-china-equity-etf.pdf

Disclaimer: This analysis is for informational purposes only and should not be construed as investment advice. Investors should conduct their own due diligence before making any investment decisions.