VanEck FTSE China A50 ETF (CETF)

Overview

The index is a specialized financial instrument that offers investors an innovative approach to track the performance of the leading U.S.-listed Exchange-Traded Funds (ETFs). By employing a rules-based, equal-weighted methodology, this index ensures a balanced representation of the top 100 ETFs. It stands out for its commitment to investing a significant portion of its assets directly in the ETFs that make up the index, adhering to a strict policy that under normal circumstances, at least 80% of the fund's net assets (plus any borrowings for investment purposes) are allocated to these ETFs. This approach is designed to reflect the performance of these select ETFs accurately, providing investors with a transparent and efficient way to access the potential of the U.S. ETF market.

Products and Services

• Rules-Based, Equal-Weighted Index

This service involves curating an index that tracks the performance of the top 100 U.S.-listed ETFs through a rules-based, equal-weighted strategy. This unique methodology ensures that each ETF within the index is given equal importance, avoiding the market-cap bias that can skew the performance of traditional indices. This approach offers investors a more balanced and diversified portfolio.

• 80% Investment Commitment

The index's policy to invest at least 80% of its net assets, along with any borrowings for investment purposes, directly into the ETFs that it comprises, stands as a testament to its commitment to closely tracking the performance of these ETFs. This strategy minimizes the cash drag that can affect the accuracy of replicating the index's performance, thereby enhancing the potential for aligned growth with the index's ETF constituents.