WisdomTree unveils China equity ETF

WisdomTree unveils China equity ETF
Credit: Reuters

WisdomTree is continuing its exchange-traded fund launch spree with a new offering that gives investors access to all classes of China equities.

The WisdomTree S&P China 500 ETF, which has been launched in partnership with ICBC Credit Suisse Asset Management, allows investors to tap into 500 of the largest and most liquid Chinese companies.

The company has embarked on several ETF launches over the past two months, unveiling two ETFs invested in US and global equities, with a leaning towards dividend growth stocks, and another focused on the European market.

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The new ETF, which is also available with a listing in sterling, combines exposure to all China equity share classes in a Ucits ETF.

It tracks the S&P China 500 index, which captures the characteristics of the entire Chinese equity market, including A shares and H shares, along with other international listings, by using large and liquid securities.

Nizam Hamid, ETF strategist at WisdomTree Europe, said giving investors access to Chinese equities has “long been” an issue for investors, adding the new offering covers all the relevant share classes.

“It represents a cost-effective means of allocating to a broad index whilst removing the operational and administrative burdens often associated with accessing A shares,” he said.

He described the new offering as a “transparent and liquid” single product to invest in China.

Nic Round, chartered financial planner and managing director at Trēowe Wealth Advisers, said the new ETF was a good idea, but added he “would not recommend investors be trailblazers”.

He said: “Rome wasn’t built in day. It is long-term strategy for us, not the latest whizzbang fund.”