Launched in partnership with ICBC Credit Suisse Asset Management, the WisdomTree S&P China 500 ETF gives investors exposure to the 500 largest and most liquid companies on the Chinese stock exchange.
The new ETF, also available in a sterling listing, combines exposure to all China equity share classes in a Ucits ETF.
The product will track the S&P China 500 index, which mirrors the characteristics of the world’s second largest equity, including A shares and H shares and other international listings, by using large and liquid securities.
Nizam Hamid, ETF strategist at WisdomTree Europe, said allowing investors to access Chinese equities has “long been an issue”, adding the new product will bring “substantial benefits”.
“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. The collaboration with ICBCCS means that European investors have a transparent and liquid single product to invest in China,” he said.
Laura Lui, head of index & quantitative investment at ICBC Credit Suisse Asset Management, said WisdomTree’s “impressive track record” as an ETF issuer will work well with the firm’s in-depth understanding of the Chinese markets.
WisdomTree has unveiled several new products over the past few month, most recently Eurozone Quality Dividend Growth Ucits ETF (EGRA) on the London stock exchange, which it launched in early July.
In June, the provider also debuted an ETF which invests in US and global equities.