iShares, the exchange-traded fund (ETF) division of asset manager Barclays Global Investors, will tomorrow launch the first ever sector-specific ETF series based on the Chinese A-share index.
On 18 November, four new sector-specific ETFs: iShares CSI A-Share Energy Index ETF; iShares CSI A-Share Financial Index ETF; iShares CSI A-Share Infrastructure Index ETF and iShares CSI A-Share Materials Index ETF, plus the iShares CSI A-Share Index ETF, will be listed on the Hong Kong Stock Exchange, each with US$500 million in day one assets under management. The new ETFs will start trading in board lots of 100 units, with the listing price determined by the underlying index performance on 16 November 2009.
According to iShares, the sector-specific ETFs will provide cost-efficient market access to investors seeking liquid and transparent vehicles for specific exposure to the Chinese market.
“Sector ETFs offer unique solutions for investors who want targeted industry exposure without the risk of single stock concentrations,” said Nick Good, CEO, iShares Asia-Pacific, in a statement. “With the launch of the iShares China A-Share ETF Series, investors can, for the first time, pursue China sector strategies while realising the unique benefits of iShares ETF investing, including liquidity, transparency, cost-effectiveness and trading flexibility.”
According to iShares’ October ETF landscape report, Asia-Pacific has a total of 187 ETFs listed across the continent, trading an average of just over US$1 billion per day.