Investors willing to make a long-term bet on China in a less risky way could find the CXSE ETF a compelling option. By excluding state-owned enterprises, the ETF focuses on businesses where shareholder returns and strong fundamentals matter the most. Yet, anti-monopoly rules, regulatory fines, or a wealth rebalance are among practices that have been and can be imposed by the Chinese government on any domestic business.
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The company operates in the finance sector, specializing in investment services with a focus on the Chinese market, excluding state-owned enterprises. It employs a strategy that aims to replicate the economic characteristics of the constituent securities of a specifically designed index. This index is differentiated by its method of excluding state-owned enterprises and by utilizing a modified float-adjusted market cap weighting approach. The fund is non-diversified, indicating a more concentrated investment in fewer assets, with at least 80% of its total assets invested in securities or other investments mirroring those in the index or closely related in economic function.
The company offers investment services focused on tracking the performance of a specially curated index comprised of common stocks in China, notably excluding those of state-owned enterprises. This service is designed for investors looking to gain exposure to the Chinese market through a diversified, yet focused, approach that aligns with the modified float-adjusted market cap weighted index strategy the company employs.
Investors are provided with a non-diversified fund option, meaning the fund's investments are concentrated in fewer assets, which could lead to higher volatility but also potentially higher returns. This option is particularly appealing to investors looking for targeted exposure to the Chinese market, excluding investments in state-owned enterprises, and who are willing to accept a higher risk for the chance of greater rewards.