WisdomTree reduces TER for ICBCCS WisdomTree S&P China 500 UCITS ETF

WisdomTree has reduced the total expense ratio (TER) for the ICBCCS WisdomTree S&P China 500 UCITS ETF (CHIN).The TER reduction of 20 basis points(bps) from 75bps to 55bps is effective from 1 January 2020.

CHIN is designed to track the S&P China 500 Index by physically holding the underlying securities, offering broad coverage of all China equity share classes – including A-Shares and offshore listings. CHIN remains Europe’s only ETF to provide investors with non-constrained market cap weighted all-China equity exposure.

The S&P China 500 Index uses a rules-based process to select 500 of the largest and most liquid Chinese companies, while approximating the sector composition of the broader Chinese equity market. All Chinese share classes are eligible for inclusion, subject to meeting minimum size and liquidity requirements. The index is weighted by float-adjusted market cap and is rebalanced semiannually in June and December. This methodology allows the index to be more reflective of the evolution of the Chinese economy than other China indices, which are limited in the share classes that they include.
 
CHIN achieved its three-year track record in July 2019, with an annualised total return of 10.1 per cent, net of fees since launch.
 
Chris Gannatti, Head of Research, Europe, WisdomTree, says: “This TER reduction offers an attractive entry point for investors interested in the long-term growth prospects of the Chinese economy. CHIN provides access to all Chinese equity share classes, including A-Shares and offshore shares, and better reflects the true nature of China’s total equity market compared to other China indices. As the US-China trade tensions have eased a bit, if economic data continues to stabilise and expectations of policy remain broadly accommodative, China could be a compelling investment opportunity.”

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