US-based asset manager Invesco has launched the first ETF in Europe providing investors with targeted access to the ChiNext 50 index of China’s largest companies in the technology sector.
The Invesco ChiNext 50 Ucits ETF will follow a capped version of the index to reduce concentration risk and ensure sufficient diversification.
Gary Buxton, head of Emea and Apac ETFs and indexed strategies at Invesco, said: “Our new ETF offers investors unique access to the long-term growth potential in China, specifically as it relates to innovation driving the transition to a new economy.”
The ChiNext 50 index reflects the performance of 50 of the largest and most liquid securities listed on the ChiNext market of the Shenzhen Stock Exchange.
The capped index being followed by the ETF includes the same constituent securities of the parent index and applies caps such that at each quarterly rebalance, no individual security weight exceeds 8% and the aggregate weight of securities with weights above 4.5% do not exceed 38%.
