ETF providers are continually seeking out innovative
strategies to offer investors compelling overseas investment
That theme has never been more prevalent than with the Chinese
markets, where restrictions on foreign investment can limit
To solve this problem, Deutsche Asset & Wealth Management
has created a suite of ETFs that have direct exposure to publicly
traded China A-shares that were previously only available to
The db X-trackers Harvest CSI 300 China A-Shares Fund (NYSE:
) was the first ETF of its kind to invest directly in the 300
largest and most liquid A-share stocks.
Since its November 2013 inception, this ETF has accumulated
more than $205 million in assets, amid resurgence in stocks of
emerging market nations. That immediate growth demonstrates a
desire by global investors to access these coveted markets
through a diversified investment vehicle.
3 Ways To Invest In Chinese Real Estate
More recently, ASHR gained approval by the Comisión
Calificadora de Riesgo for distribution among Chilean pension
funds. The ability for this ETF to be registered in Chile and
trade in local time is an advantage for pension managers in this
South American country.
Fiona Bassett, Head of Deutsche Asset & Wealth
Management's Passive Business in the Americas, was recently
quoted as saying that ASHR's approval by the Chilean pension
commission "is further validation of the interest in the Fund's
innovative exposure, and we believe it will complement our
current product suite in Chile".
This regulatory approval may soon lead to an additional influx
of new money for ASHR, as it seeks to compete with larger and
more established ETFs in this space. The iShares China Large-Cap
) has $4.8 billion in total assets but does not have the ability
to invest in the A-share market.
If successful, this new relationship could also pave the way
for admittance of the db X-trackers Harvest CSI 500 China-A
Shares Small Cap (NYSE:
) into international pension funds as well. ASHS tracks 500
small cap A-share companies and may be seen as a complimentary
ETF in order to access the total investable universe in
© 2014 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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